The February 24, 2023, issuance by the IRS of proposed regulations on the use of forfeitures in qualified retirement plans provides some welcome clarity, regulatory house cleaning, and relief for plan sponsors. With a proposed effective date of January 1, 2024, these regulations should prompt plan sponsors to review their plan language and procedures for
IRS Finalizes Regulations Allowing Plan Forfeitures to Fund QNECS and QMACS
By Joshua Rafsky on
Posted in forfeitures, IRS, QMAC, QNEC, Retirement plans
The IRS recently finalized regulations that allow 401(k) plans to use forfeiture money to fund qualified non-elective contributions (“QNECs”) and qualified matching contributions (“QMACs”). These regulations finalize proposed regulations issued last year (you can read our prior coverage of the proposed regulations here).
By way of background, QNECs and QNECs are types of employer…