smaug wrote:I'd be interested in hearing more tales from folks who have actually worked and received payment on them, but IME the firm pays out a very small amount into 401ks for the benefit of associates, but there's no real requirement for them to do so, and the amount they disburse is in their discretion.
It amounted to almost nothing and seamless meal differences would impact your compensation more.
401(k) stuff is worth digging into, but I think it's really just "how good is a firm at setting it up as a tax dodge for you" and not "who matches" because I'm dubious that any major biglaw firm does a match for associates of any significant size.
It's telling that the only people listing firms that match are saying they know from a friend of a friend.
clerk1251 wrote:How does a 401k profit sharing plan work? I've never quite understood that. Is it that a portion of all the firm's annual profits gets distributed among the entire firm?
A lot of 401k plans are called 401k profit sharing but it doesn't mean much. You have three types of contributions: 1) employee deferrals (you put in your own money) 2) firm match (optional) 3) profit sharing (optional). Between match and profit sharing they can contribute up to 25% of your comp, and the total max for everything is $54,000. Main difference between match and profit sharing is that you only get a match when you contribute, but profit sharing has to go to everyone eligible.