Guest halka Posted July 2, 1999 Posted July 2, 1999 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 Posted July 2, 1999 Posted July 2, 1999 We would recommend having use of the forfeitures specifically mentioned in the VCR and approved by the IRS.
Kirk Maldonado Posted July 3, 1999 Posted July 3, 1999 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. Kirk Maldonado
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