Forfeiture account and expense

[retbenser]

Employer wants to use "forfeiture account" to pay adminiistrative expenses.

Plan document allows such transaction.

Question: What is the tax implication of the of the distribution? Taxable distribution?

Thanks.

[ETA Consulting LLC]

Taxable to whom? This would merely be revenue to the recipient of the funds (the organization that provided the services to the plan). It would be included on the Form 5500 as an expense paid from the trust.

Good Luck!