Guest PA consultant Posted November 8, 2002 Share Posted November 8, 2002 Can forfeitures from a governmental money purchase pension plan be used to pay administrative expenses of the plan? The plan document specifies that forfeitures are applied to the Employer Contribution. It is an annually allocated, balance-forward plan. Administrative fees are automatically deducted from the fund monthly. The employer typically reimburses the plan's admininistrative fees after the end of the plan year (when the allocation is completed). But if there are forfeitures, they are first applied towards the expenses that need reimbursed, then towards the employer contribution for the next plan year. Is that allowable? Link to comment Share on other sites More sharing options...
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