Vermont Bar Journal, Vol. 40, No. 2 Fall 2014, Vol. 40, No. 3 | Page 27

In-Service Withdrawals
In theory, a profit sharing plan may permit the withdrawal of allocations that have
been held for as little as two years. This is
a holdover from forty years ago when profit
sharing plans were simply a vehicle to share
profits with employees, not their primary retirement savings vehicle. Today, it does not
make sense to permit in-service withdrawals at any time since profit sharing plans and
401(k) plans have become a primary vehicle