415 failure on terminating plan

[fiona1]

401(k) plan with a 1/1 plan year. Plan terminated on 1/31/2010. Plan term payouts have not yet been distributed.

Due to the prorated 415 dollar limit from 1/1/2010 to 1/31/2010, several participants have exceeded the 415 limit - and the excess includes matching contributions.

The EPCRS states "Any matching contribution...is then forfeited and placed in an unallocated account established for the purpose of holding Excess Allocations to be used to reduce employer contributions in the current year and succeeding year(s). While such amounts remain in the unallocated account, the employer is not permitted to make contributions (other than elective deferrals) to the plan."

Well, since this plan is terminated - there will no longer be employer contributions. So putting the match into an unallocated account is not going to do much good. Are there any other alternatives for a terminated plan?

[Guest LHart]

Assuming the Match has been appropriately allocated under the plan's terms and everybody's gotten their due with the Match, turn next to the Profit Sharing allocation, which is also an employer contribution. Use the forfeitures as a Profit Sharing contribution for this current and final year . . .