Can anyone help interpret a PPD/Corbel regional prototype as to what t

[John A]

The adoption agreement for the PPD/Corbel prototype plan for a client has a section for what to do with forfeitures that result from less than 100% vesting, and a later part of the same section for what to do with forfeitures that result from ACP test failures (forfeited excess aggregate contributions). However, the adoption agreement and the plan document seem to be silent about what to do with forfeitures (sometimes called "hanging match" or "orphan match") resulting from ADP test failures (the ACP test is passing). It is not that the client left a section blank - there is no section for choosing what to do with this type of forfeiture. Is this a PPD/Corbel plan document defect?

The plan document does seem clear that the match related to the corrective distributions of excess contributions need to be forfeited. We cannot find any guidance or any adoption agreement choices presented as to what to do with the forfeitures. The amount of the forfeitures is relatively significant.

Any suggestions?

[Guest]

What did PPD/Corbel tell you when you asked them?

[John A]

PPD/Corbel said that the section for what to do with forfeitures that result from less than 100% vesting also would apply to the "orphan match." To me, that is not the way the adoption agreement or plan document read, but it's their document, so we will use their interpretation.