A company wants to establish a tax-advantaged plan for its employ­ees. The company is relatively new, and profits are unpredictable with a meaningful amount of variability. The employer would like to...

A company wants to establish a tax-advantaged plan for its employ­ees. The company is relatively new, and profits are unpredictable with a meaningful amount of variability. The employer would like to reward employees when the company does well and is somewhat concerned that the company has no retirement plan at all, which might make it difficult to attract experienced people to work there. Due to the inherent uncertainty of their profits, the company is extremely concerned about minimizing the costs of maintaining the plan.