Maximum deductible contribution limit

[Guest Winkle]

If forfeitures are reallocated as additional match or profit share are those funds part of the maximum deductible contribution calculation?

[J Simmons]

If forfeitures are reallocated as additional match or profit share are those funds part of the maximum deductible contribution calculation?

No. They used up some of the deductible contribution, IRC sec 404(a)(3), "room" for the year they were contributed. So they don't again take up that room in the year of reallocation.

Now, as to 415© limits on beneit accruals for individuals for the year of reallocation, the amount another employee receives of the re-allocation counts against that individual benefit accrual limitation.