Profit Sharing

I'm hoping someone can give me the run down on company profit sharing. I would go directly to HR but she is a complete witch. I understand every company has their own policy but, maybe you could share your knowledge and/or experience.

My ? is does it work like a 401K? Once you are 100% vested are you allowed to take a withdrawel from it? Of course penalties and taxes apply. Can you take a withdrawel if you are not 100% vested?

TIA!

Re: Profit Sharing

the way it worked in my company is that the profit sharing money was deposited into our 401k accounts the next year. For eaxmple, our 2009 profit sharing was deposited into our 401k accounts in 2010 after the companies financial audit was completed.

Once the money is in your 401k account you can use the money just like the rest of your 401k money that is in there. however the only amount you withdraw from it the amount you have vested.

For example, lets say you have a 401k balance of $10,000 from your own contributions and then the company makes a profit sharing deposit in the amount of $2,000 and you are only 50% vested.

the max that you can withdraw at that point is $11,000 = $10,000 + $1,000 (50% of the $2,000 profit sharing)

I hope that makes sense!