Vlad401k Posted April 7, 2020 Posted April 7, 2020 We have a plan that had a partial plan termination in 2019 because 20% or more of the employees were involuntarily terminated. My understanding is that anyone who was terminated in 2019 (whether or not it was involuntarily) should become 100% vested. However, what if there are a few of these affected participants who already took a distribution (that was not 100% vested) from the plan? Should the amounts they forfeited be restored?
Larry Starr Posted April 7, 2020 Posted April 7, 2020 5 hours ago, Mr Bagwell said: Yes. Agreed. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
Mr Bagwell Posted April 7, 2020 Posted April 7, 2020 And if I remember correctly from the EOB.... you just replace the amount forfeited. You don't have to figure earnings. Sorry, my references and EOB are at work. I debated whether I should take them home...….lol.
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