Pay plan expenses from forfeitures

[jkharvey]

The plan document provides that forfeitures (of ER Matching contributions) will reduce ER contributions. The ER, however, has not done this and forfeitures have built to a considerable sum, $50,000. The ER now wants to use these forfeitures to pay plan expenses incurred when transferring assets from one investment company to another and amending the plan document (not SBJPA amendments).

This doesn't sit right with me, but I'm not finding any specific prohibition. The plan document provides that administration expenses may be paid from the trust. My concern is also that the ER has not properly handled the forfeitures in prior years.

Any suggestions?