Forfeitures and prior plan year 2016

[alexa]

We have a forfeiture balance of approx 60K @ 12/31/16 (Plan A)

We are merging this plan into a parent company plan (Plan B) effective 1/1/2018

Current forfeiture balance in Plan A is about 190K. I have suggested in reducing forfeiture prior to merger by  reducing matching , plan admin fees, allocation to participants (current Plan A order of forfeiture alloacation)

But what about the 62K as of 12/31/16- there was certainly enough employer match & plan admin expenses to reduce the forefeiture balance at 12/31/16 to zero!

Can we use this 62K toward 2017 employer match /amin expenses or must we allocate to participants as of 12/31/16 base on their Comp to total Comp

Much thanks!

Lexy

 

 

[ETA Consulting LLC]

You seemed to have missed an important detail that would necessary for an accurate answer; what does the plan say with respect to the use of forfeitures?

Good Luck!