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Posted by studiocenter on Jun 1, 2016

Fun with Forfeitures

Sooner or later, almost all 401(k) plans will face the "fun" of dealing with forfeitures. Just like every other plan-related operational item, there are specific rules that provide guidance on the "who, what, why, when and where" of using forfeitures.

  • What is a forfeiture?
  • What isn't a forfeiture?
  • When do forfeitures occur?
  • When is a distribution "complete"?
  • What is a one-year break in service?
  • How are forfeitures used?
  • Can forfeitures be reinstated?
  • When must forfeitures be used?
  • What can I do to get this right?

This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.

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