Forfeiture Use

[12AX7]

Not sure if I'm splitting hairs or not. Plan authorizes forfeiture to be "added to the Employer's contribution under the Plan." Other than a SH Nonelective, the employer contributes 5% PS during the plan year. At the end of the year, the employer missed allocating the 5% PS for bonuses.

Since the employer resolved to contribute 5% for the year, could I use some of the forfeiture for a true-up of the PS? In a strict sense of the plan language, it seems that the employer would have to contribute the amount for the true-up, then allocate the remaining forfeiture.

What do others think?

[QDROphile]

Did the person who drafted the plan have the language or legal skills or foresight to distinguish beween "add" and "offset? Plan interpretation is usually the province of the plan administrator, although the plan administrator can look to many sources for advice.

[12AX7]

You can now understand that this is one of the reasons why I took over this plan very recently. The adoption agreement also has the provision to "offset", and I am amending the plan for 2014 to include this provision in the hierarchy of forfeiture use.

This is a matter of $1,500 and conservatively, the employer should deposit to the accounts of the participants. I have a tendency to sometimes read narrowly plan provisions and and didn't want to leave out the possibility of the forfeiture use for this situation.