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5 year break occurs in year of plan termination


Belgarath
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Calendar year PS plan is terminating 12/31/2011. there are several former employees whose 5th break year occurs on 12/31/2011. Plan termination datre is 12/31/2011.

Can their forfeiture occur, or must they vest 100%? I suspect an argument could be made for either, but the conservative approach seems to be that IRC 411(d)(3) says "...benefits accrued to the date of such termination...are nonforfeitable."

Has anyone ever had a real case where the IRS has opined one way or the other?

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