Question 1

What happens to amounts left over in an employee’s account if they have not been used during the plan year?

admin · Accepted Answer

Amounts not used during the plan year cannot be returned to an employee. These forfeitures go to the employer. Most employees individually do not leave much money in their accounts. There will, however, be amounts left which may be used by the employer to offset plan costs.

Question 2

What happens to amounts left over in an employee’s account if they have not been used during the plan year?

admin · Accepted Answer

Amounts not used during the plan year cannot be returned to an employee. These forfeitures go to the employer. Most employees individually do not leave much money in their accounts. There will, however, be amounts left which may be used by the employer to offset plan costs.