Forfeiture settings can be managed in the Employer portal by going to the “My Plan” tab and selecting the “Forfeiture Settings” section.
Forfeiture funds can be used to:
- Offset Employer Contributions
- Offset Plan Fees
As it relates to contributions, if the setting is enabled for integrated plans, the maximum available forfeiture balance will automatically be applied. When forfeiture funds are depleted, contributions will switch to the ACH bank account on record.
If the plan is not integrated, the employer has the ability to choose how much of their available forfeiture balance to use for each contribution submission.
How Does Forfeiture Usage Work With Manually Submitted Contributions?
Forfeiture funds can only be used to offset Employer contributions i.e. Employer Match, Non-Elective, Profit Sharing, etc., and not Employee Contributions.
Once a manual contribution has been started and the employees’ contributions have been entered, employers will see the Forfeiture Amount that can be applied to the Employer contribution amount:
- Regardless of whether the setting is on or not, employers will be asked how much (if any) of their balance they want to use for each contribution they submit.
- If the setting is on, the "amount to use" will default to the maximum available amount, but can be changed to any value.
- If the setting is off, the "amount to use" will default to $0, but can be changed to any value up to the max available.
After setting the desired forfeiture amount to use, contributions can be submitted.
If you have any questions please reach out to email@example.com