What is the main goal of a qualified profit sharing plan?

The primary objective of a qualified profit-sharing plan is to allow employees to participate in the profits of the company. This type of plan is designed to provide employees with a direct stake in the company's financial performance, encouraging them to contribute to the organization's success. As the company's profits increase, the contributions to the profit-sharing plan can also grow, thereby enhancing employees' savings and retirement benefits.

By linking employee rewards to company profitability, these plans not only serve as a motivational tool but also foster a sense of ownership among the employees. This can lead to increased productivity and engagement within the workforce, as employees see a direct correlation between their efforts and the financial outcomes of the company.

While minimizing employer costs, providing retirement benefits, and offering health insurance might be important considerations in an overall employee benefits strategy, they do not encapsulate the core purpose of a qualified profit-sharing plan. The main focus is on enabling employees to share in the company’s profits, making option B the most accurate choice.