Discussion:Profit Sharing Plan
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Discussion Forum Index --> Tax Questions --> Profit Sharing Plan
Oaxacquita (talk|edits) said: | 2 August 2006 |
| I have a client whose employer set up a profit sharing plan long before the client had been an employee of the small company( 2 employees). My client has been working for the company for six years and 2 years ago the employer had told her that she was going to be included in the profit sharing plan. The employer had even shown the check of five thousand dollars to my client that was going to be deposited on her behalf into the profit sharing plan. The employer never deposited the funds into the fund, but did take the tax write off in 2004. My client is planning on leaving her employer and would like to know how she handle this situation. Does she have any right to the funds that were supposedly being deposited into the profit sharing plan. In the six years of working for this small company, 2004 was the only year that she knows of that the profit sharing plan was supposedly funded.
I would really appreciate some help on this topic....Thank You | |
| 2 August 2006 | |
| Hi if the plan was funded and your client was eligble to participate and was vested under ERISA law etc he/she would be entiled to his/her share. I would contact the employer to get a copy of the plan document to find out what he/she is entitled to. If the plan was never funded and the employer just took a fictitious deduction is another issue which your client would have nothing coming to them. The client was entitled to annual statements regarding the plan and its funding and status of their portion. If your client never got this chances are the employer never had a plan. So if the employer doesnt come "clean" what are the options? You could threaten going to the Dept of Labor, IRS etc and decide whether it is worth the effort. bye | |
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