Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Retirement Plan Analyst/Administrator

Compensation Strategies Group, Ltd.
(Remote / Beaumont TX)

Compensation Strategies Group, Ltd. logo

Retirement Plan Administrator

Nicholas Pension Consultants
(Remote / Corona CA / Rancho Cordova CA)

Nicholas Pension Consultants logo

Senior Plan Administrator

Atlantic Pension Services Inc
(Remote / Kennett Square PA / DE / MD / NJ)

Atlantic Pension Services Inc logo

Plan Compliance Analyst (Administrator)

RPA
(Remote)

RPA logo

Quality Assurance Manager

Nova 401(k) Associates
(Remote)

Nova 401(k) Associates logo

Retirement Plan Relationship Manager/Consultant

The Retirement Plan Company (TRPC)/an ABG firm
(Remote)

The Retirement Plan Company (TRPC)/an ABG firm logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>



Pay a Bonus to a Terminated Participant Equal to the Amount Forfeited under Their Retirement Plan?
BenefitsLink Message BoardsLink to more items from this source
Aug. 12, 2021

"In a profit-sharing only plan, is anyone aware of a problem with paying a terminated participant an amount equal to any account forfeitures upon termination? As an incentive, the company offers to pay a particular employee a bonus upon termination of an amount equal to the unvested portion of the employee's PS account that is forfeited upon termination. The payment would be taxable and paid entirely outside the plan. The forfeitures would stay in the plan and be used according to its terms. Am I missing anything that would make this problematic?"

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2022 BenefitsLink.com, Inc.