Use of Forfeitures

[Randy Watson]

Is there a problem with using forfeitures to make a corrective contribution (assume the plan specifically allows for it)?

[BG5150]

If the plan specifically allows for it, I see no problem with using forfeitures to make a corrective contribution...

[J Simmons]

Rev Proc 2008-50 addresses the use of forfeitures, if the plan permits, in a corrective allocation situation (6.02(4)©) but makes no mention of use of forfeitures for a corrective contribution. The fact that the use of forfeitures (if plan permits) is addressed in one context but not the other, and the numerous references throughout Rev Proc 2008-50 to corrective contributions couched in terms of such being made by the employer leads me to be a bit cautious on this issue. I would not use forfeitures for a corrective contribution unless the VCP reviewer expressly permits such.

**grammar corrections**