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But remember that the profit sharing plan is money in addition to your own savings, unlike a 401k that comes out of your salary. So if you remain with the same employer long enough to vest in the plan, you'll get additional compensation in the amount of the profit sharing contributions (plus their earnings).

These plans are an incentive to stay with the same employer for a longer term. Employee turnover is expensive to a company, and it's in their best interest to reduce it where possible.

I agree Peter.

It's amazing how many people think 401K are "better" vehicles (in quotes because to some I can see how they would be) when if they intend on staying with the employer (the main "benefit" that is touted about 401Ks) they are actually better off financially with a profit sharing plan.

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