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In your help page on email forwarding limits it never mentions that you can't have email forwards if you are using MX records. This is what that help page says:
Yes, there are a couple of different limits to our email forwarding:
--You can specify up to 10 domain emails to be forwarded.  
--We will forward up to 500 emails per day for your domain name. Any emails above that limit will not be accepted by our email forwarding server. The email will either bounce or be delayed until you are under your 500 email limit again.  
--You cannot respond using your domain email address as this is only a forwarding service, meaning you can only receive emails to your domain email address.  
--You can only use our email forwarding if you are using our name servers. If you are using someone else's name servers, you will need to set up your email forwarding settings on those name servers.  
I moved my domain registration to Dynadot specifically because you offered forwarding. I had planned to use that feature for addresses that don't need a full mailbox. Now after setting up and configuring the domain in accordance with the limits stated on your help page, I find I can't actually have email forwards and I feel like this was false advertising. What's worse, I was making this move on behalf of my client who is now very disappointed.

Hi, I’m really sorry about this, but I have to state that in the help file that you have quoted this last point does show that you cannot use our forwarding if your email is hosted somewhere else: You can only use our email forwarding if you are using our name servers. If you are using someone else's name servers, you will need to set up your email forwarding settings on those name servers.