Tax-Deductible Contribution

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Definitions
Deferred Contribution Plan
Deferred Contribution Plan Profit-Sharing Plan Tax-Deductible Contribution Employer Contribution Credit Carryover
A deferred contribution plan is an arrangement where unused deductions or credit carryovers to a profit-sharing plan can be added to an employer's future contributions on a tax-deductible basis. This occurs when the employer's contribution to the profit-sharing plan is below the annual 15% of employee compensation allowed by the Federal Tax Code.
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