Explanation: A profitsharing plan, also known as a discretionary contribution plan, is considered to be best in a company that has highly variable annual profits. A money purchase plan offers employees a fixed annual percentage and thus is best in a company that has fairly consistent annual earnings. A cash balance plan is considered "portable" because employees can remove the money from the plan and convert the payment into other forms. A target benefit plan uses actuarial formulas to determine how much an employee will receive toward retirement.