Different Types of Profit Sharing Plans?

[mming]

We had an inquiry today about a "cash distribution profit sharing plan that is in compliance with 29 CFR Part 549".  Researching this, we found a lot of info that implied that it's a normal PSP, but even the TPAs we work with didn't know exactly what this was.  Does anybody know what this and how it may differ from a traditional qualified 401(a) PSP?  All assistance is appreciated.     

[Peter Gulia]

In the Code of Federal Regulations’ title 29, part 549 is four rules about whether a plan is a “bona fide profit-sharing plan or trust” to meet Fair Labor Standards Act of 1938 § 7(e)(3)(b).

Here’s the first of those four sections: 29 C.F.R. § 549.0 https://www.ecfr.gov/current/title-29/section-549.0.

It’s about not counting a profit-sharing bonus in an employee’s “regular rate of pay”, which matters to determine overtime wages.

This is not advice to anyone.