Forfeitures - Plan with Related Employers

Plan has three related employers ( controlled group).

Forfeitures are held in one forfeiture account - Question - is there any issue with allowing the related employer to only use forfeitures triggered by former employees within their group. For example there is $100,000 in the forfeiture account - $40,000 from Company A, $10,000 from Company B and $50,000 from Company C.

The Plan Sponsor would like each entity to use only the forfeitures triggered by their respective former participants.  Plan document does not address is provision

Consider amending the documents governing the plan so they provide what the plan sponsor wants.

Before writing an amendment, evaluate whether an otherwise desired provision might result in a tax-disqualifying discrimination in favor of highly-compensated employees.

This is not advice to anyone.

Side note:  Is this a really big plan?  $100k in forks seems like a lot.  Disclosure:  I deal with mostly small(er) plans.

Keep in mind that the forfeiture account is supposed to be cleared out every year.  If the plan has been accumulating forfeitures in a consolidated forfeiture account over multiple years, there could be an operational issue if the Plan Sponsor is thinking of splitting up and applying these aged amounts by employer.

....and don't be cutting back any allocations of the forfeitures where you might come to realize language was always on the books!

Might also want to see what the Adoption Agreement says. Many Adoption Agreements have an option that addresses that by the pre approved providers.