doombuggy Posted February 13, 2004 Posted February 13, 2004 I have a money purchase plan that adds forfeitures to the employer contribution. They have about $9K in forfs to add to their contribution this year. Their contribution is 25%. Is there a problem adding the forfs on top of the 25%? Two participants get $40K instead of 25% because of their comp. Is this contribution still ok? Thanks for any help you guys can give me! QKA, QPA, ERPA
FundeK Posted February 13, 2004 Posted February 13, 2004 I don't see a problem with your example as long as none of the participant's exceed the 415 limit. It is okay to exceed 25% of compensation with the forfeitures because the forfeitures are not deductible. You can get a deduction for the 25% contribution, but yet each participant may receive 30% contribution (cont + forfeitures). Did that make sense?
Mike Preston Posted February 13, 2004 Posted February 13, 2004 It did to me! That means you are probably in trouble. ;-)
doombuggy Posted February 23, 2004 Author Posted February 23, 2004 Thanks for your help! Now if i could only get Relius to post their forfeiture spread! Thaks again! QKA, QPA, ERPA
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