Abstract: A plastic bag is disclosed of the type which is constructed from a front and rear wall which are folded upwardly at the bottom to form a gusset. The front and rear walls are sealed together along their entire lateral margins, except that the upper portion of each wall is provided with an unsealed flap or cuff portion. Diagonal welds are formed in the lower corner of each wall, so as to seal the wall to the underlying gusset wall, but the gusset walls are not sealed to each other. To complete the bag, each cuff portion is folded downwardly over the corresponding wall. The cuff portions are provided with cut-out openings. Afer the bag is filled, the cuff portions may be unfolded and used as carrying handles, with the cut-out openings serving as hand holes.