Refund of excess contributions.

[Guest]

I represnt a LLP with a 401(k) plan. The plan failed the ADP test for 1999. The firm was slow getting the census to the administrator, so the excess has not yet been distributed to the partners. Does anyone have any ideas for avoiding filing a 5330 and paying the 10% penalty tax. I can't find any way to avoid it but thought I would ask. Thanks.

[Alf]

If the plan document allows it, you have until December 31st to make a QNEC or recharacterize the excess contribution instead of distributing it.