Forfeitures - what to do with them?

[Guest bgrazetti]

We have a Money Purchase Plan which was terminated and merged into the company's 401(k) Profit Sharing Plan. The Money Purchase Plan had approx. 4500.00 in forfeitures remaining at the time of the merger. The plan document states that forfeitures are to be used to reduce future contributions. Since there will be no future Money Purchase Contributions, what can be done with this money?

[david rigby]

A little clarity first please: merged or terminated. Which is it? Can't be both.

[Guest bgrazetti]

The Money Purchase Plan was merged into the Profit Sharing Plan

[actuarysmith]

You've got to know when to hold 'em, know when to fold 'em, know when to walk away...... (oh, never mind).

I would imagine that the forfeitures would best be handled at this point by treating them as though they are forfeitures accruing to the profit sharing plan into which they were merged.

What does the profit sharing plan document say about forfeitures? (Probably allocated in addition to any employer contribution. If true, then there's your answer).