Guest dsw713 Posted September 30, 2010 Posted September 30, 2010 Assuming the Plan Sponsor plan docs allow for the forfeiture account to be used for payment of administrative expenses and contributions, can it be used to pay the gains/interest required because of a late contribution?
Jim Chad Posted September 30, 2010 Posted September 30, 2010 FWIW I believe the answer is no. But if they pay a bill the employer would have paid the end result is the same.
Lou S. Posted September 30, 2010 Posted September 30, 2010 No, the lost earnings would need to me made up by the employer.
BG5150 Posted October 1, 2010 Posted October 1, 2010 True. Earnings on late contributions is not an administrative expense. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
401king Posted October 1, 2010 Posted October 1, 2010 Could the lost earnings be funded by forfeitures if the plan allows forfeitures to reduce all employer contributions (in addition to administrative expenses)? R. Alexander
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