Deferred Profit-sharing Plan

Deferred Profit-sharing Plan means:
a plan whereby a portion of company profits is allocated by an employer, in good years, to an employee's trust. Contributions on behalf of each employee are expressed as a percentage of salary with 5% being common practice. If the profit-sharing plan is a qualified plan, employer contributions are tax deductible as a business expense. These contributions are not currently taxable to the employee; benefits are taxed at the time of distribution.