Cohen & Buckmann partner Carol Buckmann was interviewed by Plan Sponsor Magazine about recently filed lawsuits challenging the use of 401(k) plan forfeitures to reduce employer contributions. Carol explains that the IRS has permitted this use of forfeitures since before ERISA was enacted and points out that under long-standing ERISA authority decisions on design and how to fund a plan are “settlor decisions” and not necessarily fiduciary actions. Carol also provides tips for plan sponsors seeking to deal with this new development.
