Improper Distribution of Deferrals

[PMC]

Plan is a safe harbor plan but due to some incorrect system coding a 2007 ADP test was run, test failed and what otherwise would have been excess contributions were returned to 2 HCEEs in 2008 resulting in improper distributions.

The affected HCEEs have been contacted to try and get a return of the excesses but not successful so far.

If they don't return the excesses, are these amounts (and earnings) still required to be put back into these 2 participants accounts?

If these HCEEs have since terminated are they due any additional amounts other than perhaps earnings from the time of the incorrect distribution to their date of termination?