FAQ 491: ADP--ACP forfeiture of funds due to failed ACP test


How do you code a forfeiture of match due to a failed ACP test where the participant is not 100% vested? Currently, the only way I believe a forfeiture will show is if they are coded F or P.


You are correct. In most cases, only a status F or P will show amounts forfeiting. Active participants cannot show forfeited amounts. As a result, we recommend that you code this type of forfeiture as a transfer out.