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Left work, am I entitled to a profit share contribution?
My nephew had been with a company for the last 5 years and was vested in both the companies 401k plan and profit share plan. (100%) He was let go in February of 2011. The profit share plan paid out to the employees two months later in April 2011 for the employees 2010 profit share contribution. My nephew worked all of 2010, but did not get the profit share contribution for 2010 because it was paid out after he was let go, April 2011. Should he of gotten his contribution, since he worked all of 2010?
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This is a hard question to answer as it is a legal question the answer to which is based on how the plan is organized. You nephew needs to have a copy of the profit sharing plan and contact a lawyer to see if he was entitled to any share of the plan upon being discharged.
In many cases profit sharing and 401K plans are alike in that the employee takes their share with them on termination of employment. Only a lawyer can say for sure what your nephew is entitled to after reading the papers on the plans organization.
I will say this. If the company is no longer a functioning company it will be very hard to collect from a fund that no longer is funded.
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