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heathergirl
Cocktail Time!
Member since 10/08 4978 total posts
Name:
American mouth
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What is profit sharing?
DH's company offers profit sharing. I have a 401k and an IRA, but DH's company doesn't offer those. I don't know what profit sharing is or how it will benefit him in the future.
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Posted 12/6/10 12:11 PM  |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: What is profit sharing?
Simple definition
IRS Code
Message edited 12/6/2010 12:14:27 PM.
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| Posted 12/6/10 12:13 PM |
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heathergirl
Cocktail Time!
Member since 10/08 4978 total posts
Name:
American mouth
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Re: What is profit sharing?
I guess if DH ever leaves the company, he loses it. We just don't know what his "retirement" plan is per se. I am secure w/mine, and we're still young, but we're trying to get on the right track for the future.
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| Posted 12/6/10 12:15 PM |
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snowprincess
My happy babies
Member since 3/06 3428 total posts
Name:
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Re: What is profit sharing?
My old firm did profit sharing - but we just got a set amount into our 401K account - it did not matter what we put in - we could put in nothing and still get this percentage of the profit
it is common in partnerships
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| Posted 12/6/10 1:05 PM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: What is profit sharing?
Posted by heathergirl
I guess if DH ever leaves the company, he loses it. We just don't know what his "retirement" plan is per se. I am secure w/mine, and we're still young, but we're trying to get on the right track for the future.
If he happens to be fully vested when he leaves the company, I believe he may be entitled to the money that was allocated to him.
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| Posted 12/6/10 1:14 PM |
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Lillykat
going along for the ride...
Member since 5/05 16253 total posts
Name:
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Re: What is profit sharing?
Well my old company had this. They had matching 401K up to 6% then they offered profit sharing once you had been there 3 or 4 years I can't remember.
I would expect different companies might do it slightly differently. But with my old one - at a certain point in the year they would make an announcement about how much people would be receiving (% wise - varied per year) and it would go into your 401K directly.
It is a nice perk if your company offers it - it is basically like a bonus to your 401K.
Etd to add our had to go into the 401K and you had to be vested to get to keep it (you had to stay 5 years with the company to keep it).
Message edited 12/6/2010 1:31:24 PM.
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| Posted 12/6/10 1:30 PM |
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heathergirl
Cocktail Time!
Member since 10/08 4978 total posts
Name:
American mouth
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Re: What is profit sharing?
Posted by MrsC2009
Posted by heathergirl
I guess if DH ever leaves the company, he loses it. We just don't know what his "retirement" plan is per se. I am secure w/mine, and we're still young, but we're trying to get on the right track for the future.
If he happens to be fully vested when he leaves the company, I believe he may be entitled to the money that was allocated to him.
I have no clue if he's in it...he mentioned it but I've never seen any deductions on his paystubs to my knowledge  He will never ask his boss either...he'll just let it go 
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| Posted 12/6/10 1:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: What is profit sharing?
Posted by heathergirl
Posted by MrsC2009
Posted by heathergirl
I guess if DH ever leaves the company, he loses it. We just don't know what his "retirement" plan is per se. I am secure w/mine, and we're still young, but we're trying to get on the right track for the future.
If he happens to be fully vested when he leaves the company, I believe he may be entitled to the money that was allocated to him.
I have no clue if he's in it...he mentioned it but I've never seen any deductions on his paystubs to my knowledge He will never ask his boss either...he'll just let it go
Profit sharing is usually additional (free) money that the company deposits into the employee's retirement account. There would be no payroll deductions since profit sharing is free.
Like a previous poster said, profit sharing usually requires the employee to work a set number of years to become "vested" and actually get to keep the money.
Profit sharing is great! I wish my cheap azz company would do this. I barely (and lucky to) even get a 401k match.
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| Posted 12/6/10 1:45 PM |
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Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
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Re: What is profit sharing?
My company used to have a profit sharing plan. On an annual basis, the company would deposit a portion of the profits into an account marked for the employees. I believe it was pro-rated by salary, I don't remember. If an employee left the company, they were able to take that money with them. They had to move it to an IRA or could take the cash subject to penalties and taxes...IIRC it was treated similar to a 401k but there were no payroll deductions...it was 100% funded by the company.
Your DH should be able to get information from HR about eligibility and vesting.
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| Posted 12/6/10 1:46 PM |
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heathergirl
Cocktail Time!
Member since 10/08 4978 total posts
Name:
American mouth
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Re: What is profit sharing?
Posted by ave1024
Posted by heathergirl
Posted by MrsC2009
Posted by heathergirl
I guess if DH ever leaves the company, he loses it. We just don't know what his "retirement" plan is per se. I am secure w/mine, and we're still young, but we're trying to get on the right track for the future.
If he happens to be fully vested when he leaves the company, I believe he may be entitled to the money that was allocated to him.
I have no clue if he's in it...he mentioned it but I've never seen any deductions on his paystubs to my knowledge He will never ask his boss either...he'll just let it go
Profit sharing is usually additional (free) money that the company deposits into the employee's retirement account. There would be no payroll deductions since profit sharing is free.
Like a previous poster said, profit sharing usually requires the employee to work a set number of years to become "vested" and actually get to keep the money.
Profit sharing is great! I wish my cheap azz company would do this. I barely (and lucky to) even get a 401k match.
OK now I get it! Thank you! I had no clue and while I got the general idea, I didn't know just how he went about "getting in" the profit sharing. I feel better now, thanks 
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| Posted 12/6/10 1:47 PM |
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