Timing of Forfeiture--DC Plan

[Guest aciepluch]

Is a defined contribution plan that calls for forfeitures to be used to reduce employer contributions permitted to forfeit unvested amounts in terminated employee accounts before they have had a 5 year break in service? In other words, if the terminated employee does not request/receive a distribution, does the employer have to wait 5 years to access the nonvested amountsi n such terminated employees account? I am aware of the requirement that nonvested amounts be restored if the employee is rehired.

Thanks!

[Guest Gompers]

Aciepluch--You are correct.

If there is no distribution or cash out you would have to wait five years for a forfeiture.