rollover of too much

[Felicia]

A pension plan rolled over too much money to an IRA and now wants the money back.

I believe the money has to be returned immediately since it was an ineligible rollover. I also believe that if it remains in the plan it is an excess contribution and must be removed.

Would appreciate learning your thoughts on this.

[Appleby]

You are right. The excess amount is an ineligible rollover and must be removed from the IRA as a ‘return of excess contribution”. The IRA owner should notify the IRA custodian regarding the appropriate that the IRA owner must complete to have the amount removed from the IRA. The IRA owner may then return the funds to the plan