Recrediting previous forfeited amounts.

[Guest BAM]

Our document allows plan participants who have terminated and forfeited non-vested employer contributions to have these previous forfeited amounts restated upon being rehired only if the participant "repays" the amount that was previously distributed to him/her. My question is -- where does the money come from? If the part takes a cash distribution and spends the money can he buy in with non-qualified money? What source shoud the money be placed in? Same sources that it came from or a new source? One legal source says ANY money can be used to buy back in and it goes into a after-tax source. This does not seem true to me. This would allow participants to leave the firm roll over assets to an IRA come back to the firm and take their non-qualified money and place it into a tax-deferred account. Besides not all plans have after-tax source. Thanks for your help and if you have any references I would please reference them.