Originally Posted by
Probe
No, it is not untaxed if you put it in your PDAP. I thought it was, and it cost me a lot.
It is a different category of income. I can't remember what was taxed. I believe I would have been better off financially taking it all as taxable income, and then increasing my 401k contribution for a couple of months.
I think you still pay the social security portion of tax on the full profit share amount...even if you put it all into 401K.