Common use of FORFEITURE ALLOCATION Clause in Contracts

FORFEITURE ALLOCATION. Choose the method of allocating (dividing up) forfeitures of terminated non-vested participant balances. Option (a) allocates forfeitures as an extra discretionary contribution. Option (b) allocates forfeitures to reduce employer contributions. Options (c) and (d) allow you to allocate separately forfeitures from matching contributions. Select from options (e), (f) and (g) to determine how to allocate forfeitures from highly compensated employee's matching account when the matching non-discrimination test is not satisfied.

FORFEITURE ALLOCATION. Choose the method of allocating (dividing up) forfeitures of terminated non-vested participant balances. Option (a) allocates forfeitures as an extra discretionary contribution. Option (b) allocates forfeitures to reduce employer contributions. Options (c) and (d) allow you to allocate separately forfeitures from matching contributions. Select from options (e), (f) and (g) to determine how to allocate forfeitures from highly compensated high paid employee's matching account when the matching non-discrimination test is not satisfied.