29 CFR § 549.3 - Distinction between plan and trust.

---
identifier: "/us/cfr/t29/s549.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 549.3 - Distinction between plan and trust."
title_number: 29
title_name: "Labor"
section_number: "549.3"
section_name: "Distinction between plan and trust."
chapter_name: "WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR"
subchapter_number: "A"
subchapter_name: "REGULATIONS"
part_number: "549"
part_name: "REQUIREMENTS OF A “BONA FIDE PROFIT-SHARING PLAN OR TRUST”"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 7, 52 Stat. 1063, as amended; 29 U.S.C. 207."
regulatory_source: "18 FR 3292, June 10, 1953, unless otherwise noted."
cfr_part: "549"
---


# 549.3 Distinction between plan and trust.

As used in this part:

(a) *Profit-sharing plan* means any such program or arrangement as qualifies hereunder which provides for the distribution by the employer to his employees of their respective shares of profits;

(b) *Profit-sharing trust* means any such program or arrangement as qualifies under this part which provides for the irrevocable deposit by the employer of his employees' distributive shares of profits with a trustee for deferred distribution to such employees of their respective shares.