Deferred Contribution Plan

Definition of "Deferred contribution plan"

Tam Lawler real estate agent
Tam Lawler, Real Estate Agent Keller Williams Realty

Arrangement in which an unused deduction (credit carryover) to a profit sharing plan can be added to an employer's future contribution on a tax deductible basis. It occurs when the employer's contribution to a profit sharing plan is less than the annual 15% of employee compensation allowed by the Federal Tax Code.

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