forfeiture allocations

[Guest csals]

I have a Profit Sharing plan that is not Safe Harbor and is not top heavy. Owners worked <1000 hrs. and my Relius system did not allocate forfeitures to either owner. I thought this was correct, but our financial advisor feels because they are owners they should receive an allocation. I could not find a direct answer to this in any plan documents. Normally, owners hours are left blank in census, but this past year, their actual hours were entered. Any comments would be greatly appreciated.

[Mike Preston]

You must follow the plan's provisions. They need to report different hours to you or nothing changes.

There is no special exception for owners.

[WDIK]

I suspect that the answer IS in the plan document. You may have to look at the wording of several sections combined, such as forfeiture procedures, accrual rules, etc.

[BG5150]

I want to be an owner who works less than 1000 hrs a year!

[QDROphile]

I want to be an adviser on subjects I don't understand and get paid for my bad advice.

[BG5150]

Well, the owners can put all the money they want into the plan.

Keeping the plan qualified is another matter.

[QDROphile]

I was referring to the orginal advice about allocation of fofeitures by right of ownership. Maybe the adviser was a history major and is stuck on the divine right of kings.

[BG5150]

I was referring to the orginal advice about allocation of fofeitures by right of ownership. Maybe the adviser was a history major and is stuck on the divine right of kings.

Never mind my other reply. I was thinking that the owners wanted to put something in, and wasn't thinking about forfeitures. It's Tuesday , but if really feels like a Monday.