Nonforfeitable Account Clause Samples

A Nonforfeitable Account clause ensures that the account holder’s rights to the funds or benefits in the account cannot be lost or taken away, regardless of future events or actions. In practice, this means that once contributions are made to the account, the beneficiary retains an irrevocable claim to those assets, even if they leave employment or the plan is terminated. This clause is commonly found in retirement or pension plans, where it protects employees from losing their accrued benefits. Its core function is to provide security and certainty to account holders by guaranteeing that their vested interests are protected against forfeiture.