what happens to unused pto
Some state laws require the payment of unused PTO upon an employeeâs termination of employment and do not permit forfeiture of unused time. Application to 403(b) and 457(b) plans The guidance in the revenue rulings only addresses contributions made to qualified plans.nder the revenue rulings, the PTO plan operates on a âuse it or lose itâ basis and participants cannot carry forward unused PTO into future years. Â©2009, The Prudential Insurance Company of America, all rights reserved.