Participant Count Question

[Guest rachd]

We have a bunch of participants who received employer (profit sharing) contributions and then terminated. They were not vested but the employer hasn't requested the distribution of these accounts -so on statements, it's still under their name.

On the 5500, are they counted as being "separated & entitled to future benefits"? And/or as a participant with an account balance?

I'm thinking the money should be considered forfeitures but I'm not really sure. Any insight is appreciated!

Thanks,

Rachel

[WDIK]

Most prototype documents address the issue of nonvested terminees. Refer to your plan language to determine when the nonvested account balances are considered forfeited. Then, calculate your count accordingly.