Tuesday, July 28, 2020

Can Forfeitures Help You Pay Plan Expenses?

When it comes to plan expenses, you have options. If your plan design permits, consider paying plan fees with forfeiture account assets. This option preserves corporate assets and does not require you to shift fee payments to plan participants. Generally, these funds should be used for the plan year in which they are forfeited. Depending on your plan’s provisions, these assets can be used to:
  • Pay certain administrative expenses
  • Reduce the amount required to fund an employer contribution
  • Allocate to participant accounts
Contact your Client Service Team to discuss your options.