Illegal Immigrants in Profit Sharing Plan

[Guest Powers]

I have a situation that I would like to seek advise on. I have a client who has four Hispanic participants who have gained U.S. employment using forged Social Security Cards and Green cards. The client just found out by the SSA that the documents are not valid. The client has given the participants a reasonable time frame to gain legal work papers and apply for a valid Social Security Card. If they cannot secure the proper documentation they will be terminated.

These participants have account balances, but are not vested. So upon termination their accounts are forfeited and reallocated.

Does this affect the qualified status of the Profit Sharing Plan?

[Guest Jennifer Reid]

This situation as you describe it should not adversely affect the plan's qualified status. Do you have some reason to believe it would?