As detailed in the Spring 2017 edition of Employee Benefits News, earlier this year the IRS issued proposed regulations that allow unallocated forfeitures in a plan to be used toward the funding of safe harbor contributions. Prior to the new rules, forfeitures could only be used to offset the sources of contributions subject to vesting. The proposed rules allow forfeited balances to offset fully vested safe harbor contribution sources. Plans are permitted to rely on the proposed regulations before they become finalized as long as the plan is amended to comply with the regulations by the end of 2017. Windes will be sending an amendment to our clients for those plans affected by this change.
For questions or more information, please contact Richard Green at firstname.lastname@example.org or 844.4WINDES (844.494.6337).