Gruegen Posted April 20, 2015 Report Share Posted April 20, 2015 If participants who are "affected" by a partial plan termination in a DC plan have already taken a distribution from the plan and the amount the participant previously forfeited needs to be reinstated to their account, should the amount reinstated be adjusted for investment earnings? I don't consider this to be a "mistake" that necessitates investment earnings, but perhaps the IRS would disagree. Link to comment Share on other sites More sharing options...
Lou S. Posted April 20, 2015 Report Share Posted April 20, 2015 I don't think there is anything in the code about restoring earnings. I think you just need to restore the amount forfeited w/o earnings when partial termination is determined. Link to comment Share on other sites More sharing options...
QDROphile Posted April 20, 2015 Report Share Posted April 20, 2015 The plan should say that restoration will be done based on the balance at time of forfetire, withou adjustment for earnings. Link to comment Share on other sites More sharing options...
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