Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement. Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?
A)deferred profit-sharing plan
B)Lincoln incentive system
C)Jefferson incentive system
D)gainsharing plan

Question

Quizplus · Accepted Answer

A)With deferred profit-sharing plans, the employer puts cash awards into trust accounts for the employees' retirement. Here the employer generally distributes the awards based on a percentage of the employee's salary, or some measure of the employee's contribution to company profits.

Tanner's Employer Puts a Predetermined Portion of Profits into a Trust