PaulaRafferty
Sep 16 2004, 12:07 PM
Probably a stupid question, but can forfeitures that are normally re-allocated to plan participants be used towards the required top-heavy contribution?
Thanks for any help!
SoCalActuary
Sep 16 2004, 12:21 PM
Document usually addresses this issue.
In general, if a forfeiture is used as an annual addition under 415, then it is part of the minimum contribution under top-heavy. Does the forfeiture get added to the contribution, or does it offset a contribution as in the old money purchase plan rules?
Check your plan doc for the rules of this plan.