On January 18, 2017, the IRS released proposed regulations to allow the use of forfeitures for funding Safe Harbor Matching, QNEC or QMAC contributions.
The IRS is accepting comments through April 18, 2017. The proposed regulations would be effective for taxable years on or after the regulations are finalized, however, the proposed regulations may be relied on now. Plans would have to be amended if they contain language prohibiting the use of forfeitures for funding the above contributions.