Originally Posted by Airhogg

Because you are putting it into a qualified plan that falls under IRS guidlines. (Regardless of if they take a chunk now or later) If you want to scare yourself, read a little about how much control the government can legally exercise over your 401k, it's disturbing 😱 Some Democrats have floated seizing all 401k money to balance the budget and doling it out to you as they see fit. Profit Sharing can be paid in cash, paid into a deferred compensation only, such as our B fund type plan or a combination of both. Some employers only allow profit sharing into retirement funds, thus the IRS oversight, again I'm no CPA, explained by a non pilot friend of mine...