Forfeiture

Unvested amount of money remaining in a retirement plan when a participant is terminated and the employee withdraws the amount vested. When this type of situation occurs, a forfeiture must either be used to reduce the plan sponsor’s future plan contributions or be reallocated to the other participants.
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Loss of a right in consequence of a crime or breach of engagement. Thus, rights under an insurance policy may be forfeited if the claim is fraudulent.

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