Listen Money Matters - Free Your Inner Financial Badass. All The Stuff You Should Know About Personal Finance.

We get a lot of listener questions, and sometimes we get the same question several times. When that happens, we know a five questions episode is in order! Today we bring you give questions on profit sharing, tradelines, 403Bs, 401ks, and paying off debt.  Question One:  Can you guys explain the difference between a regular 401k vs. profit sharing 401k? What’s the difference between the two and can you withdraw from both early?  Profit Sharing is solely employer-funded. You’re not putting money from your paycheck into it like you would a 401k. It is your employer making contributions towards your retirement.  Contributions are usually based on the percentage of salary – higher salary = higher profit sharing. As for withdrawal, the plan administrator has a lot of decision making power in determining pre-withdrawal requirements.  For a 401k, the employee is the primary contributor to account. Some employers will match contributions, but not a requirement. Even if they match in given year, an employer can suspend