The purpose of this video is to share what a forfeiture account is with your 401k in pension. The forfeiture account is managed by your third party administrator and accumulates money when employees who are terminated and separated do not have enough tenure to vest in keeping your employer contributions employees always keep their deferrals since it's their own money. They are putting into the 401K regardless of whether they are vested in the employer contribution. The forfeiture account can pay for eligible plan expenses that include quarterly invoices profit sharing and pension contributions as well as payroll employer contributions or matches.

Of the forfeiture account as a prepaid account unvested money only enters the forfeiture account when the terminated employee requests to remove their funds from the 401K or is forced out of the plan due to the balance being below a threshold usually $5,000. Your third party administrator keeps track of Eligibility vested balances terminate employees and team member Force house on your behalf. We recommend automatically applying your forfeiture balance towards quarterly invoices. If you'd like to review vesting requirements for your plan, check out the vesting schedule videos, should you ever wonder how much is in your account? Please don't hesitate to ask by sending an email to service at Panda wealth.com now, that's how the forfeiture process works.

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