401k forfeitures

Discussions on WindowsForum.com about 401k forfeitures center on recent federal court rulings, including a Central District of California judge dismissing a class action against AT&T. The case reinforces that participant lawsuits over the use of 401(k) forfeitures to offset employer contributions are legally deficient when plan documents expressly permit the practice and no plan assets are diverted outside the trust. This emerging body of decisions tightens ERISA pleadings, making it harder for plaintiffs to succeed in such forfeiture-related claims. The tag covers legal developments and implications for retirement plan sponsors and participants.