Deferred profit-sharing plans are often used as quasi pension plans,particularly in medium-sized companies.

Question

Quizplus · Accepted Answer

Deferred profit-sharing plans (DPSPs) are indeed often used as quasi pension plans, particularly in medium-sized companies. DPSPs allow employers to share their profits with employees, and the contributions made by the employer can be invested and grow tax-free until they are paid out to employees. This allows employees to benefit from the company's success while also providing a form of retirement savings.

Deferred Profit-Sharing Plans Are Often Used as Quasi Pension Plans,particularly