Which profit-sharing plan provides tax advantages for employees by postponing income taxes, often until the employee retires?

Question

Quizplus · Accepted Answer

C)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. There is a tax advantage, since employees' income taxes on the distributions are deferred, often until the employee retires.

Which Profit-Sharing Plan Provides Tax Advantages for Employees by Postponing