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401(k) forfeitures 101: What they are, how they’re used, and where plan sponsors get stuck

401(k) forfeitures 101: What they are, how they’re used, and where plan sponsors get stuck

by JoAnn Cassell | Apr 15, 2026 | 401k Compliance, Employee Termination

If forfeitures are little more than an afterthought in managing your 401(k) plan, you are not alone. 401(k) forfeitures are one of those quiet plan mechanics that can create outsized compliance issues when plan sponsors misunderstand—or worse, ignore them. Let’s break...

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