Russell v. Princeton Laboratories, Inc.

The opinion of the court was delivered by

Weintraub, C. J.

This case involves a dispute as to the amount payable to an employee from an employees’ profit-sharing trust upon the termination of his employment. On cross-motions for summary judgment, the trial court found against the employee. The Appellate Division affirmed, and we granted certification. 47 N. J. 574 (1966).

The trust was created in the light of section 401 of the Internal Eevenue Code of 1954, 26 U. S. O. A. § 401, to obtain the tax advantage it permits the employer and the employees. The indenture provides the trust “is created…