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Posted

What's the best way to handle a plan when a partner leaves and is not 100% vested? Should the vesting schedule be amended to 100% immediate or settle outside of plan (tax consequences not good)?

Posted

I must be stupid. I thought that would be governed by the terms of the plan.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

Partner put in their own money yet it is not 100% vested.

Non-vested portion is forfeited.

Partnership can choose to do something outside of the plan.

Amending the vesting schedule is only an option if the Partnership is willing to let all employees share in a more generous schedule.

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