Using forfeitures to pay VCR amount?

[Guest halka]

The defined contribution plan currently has significant balance in forfeitures. Plan document says "forfeitures may be used to reduce employer contributions.."

Plan expects results of VCR to require $100,000 payment to Plan (some of which goes to former participants).

Question: Can/should the VCR liability be satisfied from the forfeiture account? Any regs, cases, opinions greatly appreciated.

[Guest Ray Williams]

We would recommend having use of the forfeitures specifically mentioned in the VCR and approved by the IRS.

[Kirk Maldonado]

My recollection is that the DOL has stated that you can't use plan assets for this purpose, but I can't remember the forum in which they mentioned it.