Since We’re Talking Retirement Plans...

You should review your retirement plan’s forfeiture account and ensure any forfeited amounts are used or allocated promptly, in accordance with your plan document. In most cases, unallocated funds in a forfeiture account must be used no later than the end of the plan year following the year they were generated.

IRS guidance recommends that forfeitures deposited into the forfeiture account(s) be allocated at least once a year. Typically, these amounts may be applied toward plan administrative expenses or used to offset employer contributions.

On another note, it’s important that you retain participant’s election forms. Should your plan ever come under audit, you will need to provide these.

If you have any questions about what we discussed regarding retirement plans, please reach out to us.