Chapter 4: Qualified Pension Plans

01.Core Concepts

• Forfeitures: The unvested amount of a participant’s benefit at their termination of service with the plan sponsor. • Allocation of forfeitures • Defined benefit plans  Reduce future plan costs for the employer • Defined contribution plans  Reduce future plan costs for the employer, or  Pay plan administrative costs, or  Allocate to other plan participants (nondiscriminatory)