buckaroo Posted January 25, 2005 Posted January 25, 2005 I have a client who has a 401(k) Plan with a discretionary match in a Corbel volume submitter. Over the past year, they have incurred a large amount of forfeitures from the match source. They wanted to know if they could use the match forfeitures to reduce a possible match contribution or a possible profit sharing contribution. Is the forfeiture limited to the source from which it occurred? The document states (Section 4.4©) that the forfeiture is (among other things) used to reduce Employer contributions. It does not specify matching or profit sharing. Any help would be greatly appreciated.
FundeK Posted January 25, 2005 Posted January 25, 2005 At a previous employer, where we used Corbel, our legal department advised us that the forfeitures could be used to fund any ER contribution. We used match forfeitures to fund PS contributions and PS forfeitures to fund ER match contributions. Of course, this was always at the direction of the Client.
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