Forfeiture Reallocations Timing

[Guest Charles G]

Would a forfeiture reallocation to participants result in different amounts when allocated on 1/10/01 or 6/10/01?

Thank you for your insights.

Charles

[Guest]

depends. or at least I am going to guess what you are asking.

ee is termed and paid out. in balance forward accounting the amount of forfeitures shouldn't change. in individual accounts, the forfeited $ may end up in some type of interest bearing account, so depending on what date 'forfeitures' are run, I suppose you could have a difference. (Otherwise you could never liquidate a forfeiture account, - if you used the value as of 12/31, by the time you told the investment house, there would be earnings, etc.

[Guest Charles G]

Daily Value or Balance Forward could matter. As the 12/31/00 value for the forfeiture account will be known, yet the value would change within a Daily Value plan at the time of allocation.

Say the forfeiture account has $ 5,000 value on 12/31/00, due to forfeitures from a profit sharing source. We've informed the company of this amount and will reallocate this 5,000 amount per Plan document. The forfeitures are invested in a Money Market fund, thus can not be less than the 12/31/00 value.

Does the 'timing' of this allocation matter? Would a 1/10/01 or 6/10/01 reallocation result in the same allocation amounts?

I would expect that participants would received the same amount to their account regardless of when it is actually posted sometime in 2001? Just wondering if I'm missing something...

Thank you.