The IRS has continued its focus on forfeiture allocations. Despite IRS restrictions on “carrying” forfeiture balances, many plans continue to maintain forfeiture balances over multiple years. Forfeitures can improve plan economics by reducing contributions and paying plan fees. However, if the plan is not designed correctly or the employer does not properly apply plan provisions, the failures can potentially increase contribution requirements and result in costly corrections.
To properly apply the rules regarding forfeitures, practitioners must understand all of the rules and options regarding forfeitures. This web seminar focuses on those rules and options.
- Allocations options
- Improper forfeiture options
- Carrying forfeiture accounts
- Fee payments from forfeiture account
- Forfeiture events
- Timing of forfeitures
- Nondiscrimination testing
- Plan provisions
- Offsetting employer contributions
After attending this Web seminar, an attendee should be able to:
- Determine when a forfeiture arises
- Determine when a plan must allocate forfeitures
- Determine whether it is better to use forfeitures to increase or reduce contributions
- Determine when you can use forfeitures to correct plan failures
- Report fee payments from forfeiture accounts
- Determine the difference between a forfeiture account and a suspense account
- Determine the proper uses of forfeitures
- Correct a failure to allocate forfeitures timely
- Test forfeiture allocations for nondiscrimination
- Determine which allocations a forfeiture may offset
Speaker: David Schultz, J.D.
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