Originally Posted by
Blue Dude
We don't get 5% of PS in our 401k now. Yes, the company rebranded it that way but it's not profit sharing. It's just 5% of your up to 13% (AIP 15-16%) contribution. The 5% PS cliff is simply gone; we don't get it anywhere, including in the AIP. The only thing the AIP does for us in this regard is increase the company contribution 2% (3% in 2021) without the requirement to match funds. That's it, there's nothing else there.
Not! On the retirement side you are correct. On the profit sharing payout side, the cliff is alive and well...
They will pay you your profit sharing in case ONLY that profit sharing that exceeds 5% of your eligible wages.
So in a year that we earn enough to get a profit sharing check of 6%, our actual check is for 1%.
First 5% goes to Robin and Joanna.