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    vweymouth's Avatar
    vweymouth Posts: 1, Reputation: 1
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    #1

    Aug 15, 2012, 12:30 PM
    Accounting questions and answers
    Should the balance in a 401k forfeiture account be a prepaid expense?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Aug 15, 2012, 03:28 PM
    Ask yourself is this an asset? will there be a future realisation of this asset?
    NariahHolt's Avatar
    NariahHolt Posts: 2, Reputation: 1
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    #3

    Aug 17, 2012, 04:02 PM
    Yes. I have a similar situation but our tax accountants don't want a gl account for forfeitures. They say we should make a j/e offsetting the 401k expense account. Seems like this would work too? Or is one method better over the other?
    NariahHolt's Avatar
    NariahHolt Posts: 2, Reputation: 1
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    #4

    Aug 17, 2012, 04:13 PM
    I would think it better to consider it a prepaid expense and expense in proper period but I suppose may be missing something
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