Common use of Nonforfeitable Accrued Clause in Contracts

Nonforfeitable Accrued. Benefit Not Exceeding #3500 When a separate participants vested balance does not exceed $3500, the plan allows the employer to separately establish the timing of these distributions, separate from the distribution dates. When you complete this section, you need to balance two concerns: 1) will the timing of the distribution cause the participant to consider it a "severance benefit" and therefore encourage separation from service and 2) the administrative concerns of carrying a non-active account in the plan. Disability - The plan allows you (the employer) to establish a different target payout date for disability distributions in options (f) and (h).