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Leena discusses profit-sharing plans, describing them as defined contribution plans primarily funded by employers without requiring employee contributions. If a company performs well, the employer contributes on behalf of employees. These contributions must be equitable under the law, though employers may favor older employees in funding. The money is typically placed in a savings account for employees, but it may not be fully owned by them immediately due to potential vesting schedules. Employees can be fully vested or subject to cliff vesting, which may take up to six years to receive full benefits.
