Portion of employer contribution in which the participant is not vested, and is forfeited (returned or given up) when an employee separates from service with the employer .
IRC § 411, IRC § 401
Additional Helpful Information
- Certain types of contributions are non-forfeitable, such as Qualified nonelective contributions (QNECs) , Qualified matching contributions (QMACs) ,Contributions to SIMPLE IRA and SIMPLE 401(k)s and Salary deferral contributions
- Contributions become nonforfeitable upon the occurrence of certain events, such as the termination of the plan