415 violation correction and excise tax

[SMB]

Am I correct in my understanding that a corrective distribution of employee salary deferrals to correct a 415 excess is not subject to the 10% excise tax? Need to confirm before the 15-month deadline for filing Form 5330 expires 03/31/00.

Thanks to any and all for your response!

[MWeddell]

That's right, the refunded amounts over the 415 limits are not subject to the early distribution 10% excise tax under IRC 72(t). The cite is Rev. Proc. 92-93. There might be a more recent authority, but not one I could quickly find.