Legal Question in Business Law in New Jersey

profitsharing deduction

i would like to know if my employer can do this i get profit sharing but don,t get any money quaterly just keeps going in and get a statemeant once a year when they get around to giving it to me have ask all the time for it but my real corcern is this if they fire me they say i forfiet 60 percent of it if i chosse to quit i forfiet 40 percent of it is this legal. thanks for any info tony


Asked on 10/05/06, 6:23 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: profitsharing deduction

Without reading the Plan Document, my comments are general. All qualified plans must comply with federal law, which does allow some deferred vesting (over time) and divesting if the employee leaves (voluntarily or is fired) in less time than it takes to be fully vested. If the plan does not meet the criteria of the law, it can lose its qualification status. All employees must be given a Summary Plan Description informing them of the Plan and how it operates. If you can get me a copy (mail or fax), I can review it and try to make a determination if it complies with current law. This is a response to an Internet question and the reply is not intended to be legal advice or to create an attorney-client relationship. Missing or incomplete facts could result in a different response.

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Answered on 10/06/06, 12:13 pm


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