Reg. § 1.401(a)-19 Nonforfeitability in case of certain withdrawals.
(a) Application of section Section and this section apply to a plan to which section applies. (See section and for applicability of section ).
(b) Prohibited forfeitures
(1) General rule A plan to which this section applies is not a qualified plan (and a trust forming a part of such plan is not a qualified trust) if, under such plan, any part of a participant's accrued benefit derived from employer contributions is forfeitable solely because a benefit derived from the participant's contributions under the plan is voluntarily withdrawn by him after he has become a 50 percent vested participant.
(2) 50 percent vested participant For purposes of subparagraph (1) of this paragraph, a participant is a 50 percent vested participant when he has a nonforfeitable right (within the meaning of section and the regulations thereunder) to at least 50 percent of his accrued benefit derived from employer contributions. Whether or not a participant is 50 percent vested shall be determined by the ratio of the participant's total nonforfeitable employer-derived accrued benefit under the plan to his total employer-derived accrued benefit under the plan.
(3) Certain forfeitures of this section does not apply in the case of a forfeiture permitted by section and (relating to forfeitures of certain benefits accrued before September 2, 1974).
(c) Supersession Section -(19) of the Temporary Income Tax Regulations under the Employee Retirement Income Security Act of 1974 is superseded by this section.
(Sec. 411 Internal Revenue Code of 1954 (88 Stat. 901; 26 U.S.C. 411))
[T.D. 7501, 42 FR 42320, Aug. 23, 1977]