FAQ 182: Vesting--Vested amount on terminee with prior distribution does not equal ending balance x vesting percent |
Problem: The vesting percent is right, but the vested amount is wrong. Employee: Ending Balance 538.04, 80% vested, Vested Amount 275.72, no earnings allocated Prior distribution was 773.55 |
Solution: Explained the calculation of the current vested amount taking into account that the participant had a prior distribution: Ending Balance 538.04 Plus Prior Distribution 773.55 Total Account: 1311.59 multiply by Vest % * 80% Vested Amt Total 1049.27 Prior Distribution -773.55 Vested Amt still due 275.72 Depending on the coding in the Plan Specs, the vested amount still due could also have earnings added on to the total. |