Forfeitures to fund late earnings ?

[Guest jvandyke]

I had a question from a co-worker. A client of hers needs to fund late deposit earnings. They want to use plan forfeitures to allocate these earnings versus a check from the corporate account. In doing a little research, it doesn't appear that forfeitures should be used to fund this type of deposit. Forfeitures are used to pay expenses or fund EMPLOYER contributions. This really isn't an employer contribution.

Any opinions? Anyone ran into this?

thanks!!!

[Lou S.]

I'm pretty sure that EPCRS does not allow the use of forfeitures to fund lost earnings on late deposits.