Deferred Profitsharing

Definition of "Deferred profit-sharing"

Portion of company profits 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 according to the IRS, 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.

Search Real Estate Glossary

Related Real Estate Glossary terms

Capital Stock Insurance Company

Company that has a capital fund established by contributions from its stockholders in addition to it ...

Loss Payable Clause

Coverage for a mortgagee where real or personal property, used as security for a loan, is damaged or ...

Collateralized Mortgage Obligations (cmos)

Bonds that are secured by mortgage securities classified as either interest only or principal only s ...

Tax Liability

Legal obligation to pay taxes associated with owning property or earning income. For example, a real ...

Chargeable

Describing automobile accidents that are considered to be the results of the negligent acts of the i ...

Effective Annual Yield

Real rate of interest on a loan. It is the coupon rate divided by the net proceeds of the loan. Assu ...

Related Real Estate FAQ

What Does A Back-end Ratio Mean?

A borrowers other debts, such as auto loans and credit cards, figured into the debt-to-income ratio. ...

What Is Hazard Insurance?

Hazard insurance is insurance coverage that compensates for physical damage to a property from natur ...

What Is A Quit Claim Deed?

A quit claim deed is a formal document that denies a claim to a certain property. Often used to clea ...

What Is An Investment Property?

An investment property is a property you purchase with the intension of using it as a rental income ...

Why Should I Use A Real Estate Agent?

A real estate agent is more than just a \"sales person.\" They act on your behalf as your agent, pr ...

What Is A Private Mortgage?

Private mortgage insurance is insurance that protects mortgage lenders against default on loans by p ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

3 tips to ensure your sale goes through Home Prices - The Extra Costs What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? How Does The Home Loan Underwriting Process Work? What Must I Disclose When Selling My Home?

FAQ

What do I need to know about Renters Insurance, and what does it cover? What is a home warranty? What is a buydown? What is title insurance? How do I file an Insurance Claim?