Excess Contribution

[oldman]

An ERISA 403(b) plan provides that the employer, at its discretion, may make a nonelective contribution equal to a percentage of compensation, determined by the employer, for the payroll period, not to exceed $2,000. This nonelective contribution is subject to a 100% immediate vesting schedule. For 2009, one participant received total employer contributions of $3,257.

Should the excess amount of $3,257 and associated earnings be taken out of the participant's account and used as a credit towards future contributions? If there is a loss associated with the excess amount, would the employer be responsible for making whole the amount?

[oldman]

Pardon the misprint. The question is how to handle the excess of $1,257?

[30Rock]

Pardon the misprint. The question is how to handle the excess of $1,257?

I think you know oldman