Participant terminated in plan year of termination. Fully vest?

[Lori H]

Plan year runs 2/1 - 1/31. Participant terminated in August with a year of service. Resolution to terminate was executed in January. Would participant fully vest despite terminating 4 or so months prior to formal termination? If not, a portion of her forfeitures will be reallocated to her.

[Kevin C]

You'll want to read GCM 39310. You'll also need to know if she was paid her vested balance before the plan terminated.

[Lori H]

Thanks and no she was not paid her vested balance before the plan terminated, but she did embezzle $37K from her former employer before she was terminated.

[ESOP Guy]

Thanks and no she was not paid her vested balance before the plan terminated, but she did embezzle $37K from her former employer before she was terminated.

The embezzlement while unfortunate is irrelvant. Since this person wasn't paid before the plan was terminated I would say they are 100% vested.