FAQ 386: Allocations--Forfeitures reallocated to another source

Problem: Is there any way to have the contribution/forfeiture calculation reallocate forfeitures to a different employer source? We have several examples, but the most common are profit sharing plans that had a money purchase plan merged in to them. The terminated participant forfeits the MPP source, but we can't figure out how to get it to reallocate to the PSP source.

Solution: The only "automatic" option available is to use Source 2 forfeitures to offset a Source 3 Match contribution. Other than that, you would need to show a transfer of the amount from the current source to the reallocated source for the forfeiting employee, then run the calculations to reallocate from there.