Excess Match Contribution

[Guest MUSICMAN]

You have a 401(k) Plan which also includes a match and profit sharing feature. The company matched in excess of the

402(g) limit for several plan years.

My question is, does the excess match get placed into a suspense account to be used to offset future match contributions (as described under the self-correction program) or, do you reallocate the excess match now as a profit sharing contribution.

Is the answer clear-cut? If so, where can I find it?

[Guest JEP]

This should be answer that can be found in your plan document. I would agree with you that the excess match should be forfeited and remain in the plan. Your document should then specify how to handle this excess match.

One other item, be sure the ER does not include the excess match in their deduction.