Only employee with a balance, 0% vested

[Logan401]

A client is an adopting employer in an MEP, and has only one employee. This employee will be terminating soon, and is 0% vested in his employer source. If the company does not hire a replacement for this employee, what happens to the forfeited employer money?

[Bill Presson]

Whatever the plan document says.

[Logan401]

It specifies it can be used to offset future employer contributions. 

[Mr Bagwell]

could this be a partial plan term and the employee needs to be made 100% vested?

[Logan401]

The client mentioned that it is possible they hire someone, but what if in a year or so they decide against it. Would that forfeited money be distributed to the former employee that forfeited it?

[Bill Presson]

Will there not be any future contributions for the owner?

[Logan401]

Owner of the company is not on the payroll

[Bill Presson]

Still might need to consider it a partial termination and vest 100%. If not, might be able to use it to pay fees.

And, if there's no employees, might want to terminate the plan.

[Mike Preston]

4 hours ago, Bill Presson said:

Still might need to consider it a partial termination and vest 100%. If not, might be able to use it to pay fees.

And, if there's no employees, might want to terminate the plan.

It's an MEP.

[Logan401]

The balance will be over $6k, so if a year from now there are no new employees and it is considered a partial term, what happens to the $6k balance?