Official Clarifies When Forfeitures Can Be Used as Plan QNECs

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Employers will no longer be permitted to use forfeitures, or nonvested amounts left in employee accounts, for correcting certain kinds of retirement plan qualification errors, an IRS official says. Forfeitures can be a source of qualified nonelective contributions for some corrections but not others, IRS's employee plans voluntary compliance program coordinator says. IRS will clarify the differences in its next revenue procedure on voluntary corrections, Avaneesh Bhagat says.