May a profit sharing plan use forfeitures to pay administrative expenses? Rev. Rul. 84-156 addressed this issue in the context of a money purchase plan. Is this all the guidance that exists? Any thoughts? Thanks. Ed

Yes, a profit sharing plan may use forfeitures to pay for expenses, assuming this is covered by the plan document. However, I couldn't find any affirmative authority to cite: ERISA permits it is it's a reasonable cost of administering the plan and nothing in the Code or IRS regulation prohibits it.

Before TRA'86, money purchase pension plans couldn't allocate forfeitures to participants without violating the definite contribution or benefit formula requirement for pension plans, which may explain the concern behind the 1984 guidance you read.