"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?"