I wanted to consolidate all of my 401(k) into one account.
Recently, I requested direct rollover from my older 401(k) accounts into the current 401(k) account and was surprised to see that I lost a bunch of monies on forfeitures.
So, What are 401k plan forfeitures?
"Forfeitures are portions of an account balance that a participant loses by terminating employment prior to becoming fully vested.
These amounts are reallocated to the remaining participants based on the terms of the plan document."
ah-ha, so I never lost the money...It just wasn't there to begin with since with terminating my employment with the past employers I was forfeiting the money anyway.
Here are two examples:
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