Alerts3.1.23
IRS Sets Deadline for Using 401(k) Plan Forfeitures
The Internal Revenue Service issued proposed regulations for use of forfeitures for plan expenses
On February 27, 2023, the Internal Revenue Service (IRS) issued proposed regulations imposing a deadline for when a qualified defined contribution plan (like a 401(k) plan) must use forfeitures to pay plan administration expenses, reduce employer contributions or be reallocated to other participant accounts. The new deadline is 12 months following the close of the plan year in which forfeitures were incurred under the plan terms.
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