Skip to main content




401(k) Forfeiture

A forfeiture is part of an employee’s account balance (employer contributions) that is lost because it was not vested when the employee was terminated.

Since these funds come from assets that weren't vested in the plan, the IRS only allows the funds to be used for profit sharing contributions, employer discretionary matches, or plan fees. The funds cannot be used for Safe Harbor matching.

  • Was this article helpful?