PEO Question

[Guest Powers]

We administer a PEO that has several co-employers that have gone out of business and terminted their plan. All of the employees have been paid out but they have left amounts in the forfeiture account. I have not come accross this as usually the co-employers that terminate set up a successor plan and we would just wire the forfeitures to that plan. Has anyone had this happen or have a cite or recommendation on how I should proceed? Any assistance would be awesome!

[Guest Sieve]

If forfeitures are not used to pay adminsitrative expenses, they should be allocated (and then distributed) to the participants at the time of the termination (or to those to whom the forfeitures should have been allocated).

[Ron Snyder]

We always use them for the Administrator's party fund!