HCE got too much match

[Santo Gold]

One of the plan's HCEs received a much larger match than he should have. The plan year is now over.

(1) By definition, is this excess considered an "excess contribution"? I do not think so, as that term applies to employee 401(k) contributions that need to be returned due to a failed 401k test. Is their an official term that describes this type of contribution violation?

(2) Does the match simply come out of that HCE's account and is used for future employer contributions?

(3) Does the excess amount still count in the HCEs ACP test, as well as in the 401a4 testing (cross-tested PS allocation in the plan)?

Thanks

[Tom Poje]

that sounds like an operational failure (failure to follow match formula). should be self correctable.

generally any excess (plus earnings) are placed into suspense and used to reduce future contributions

[Will.I.Am]

Do you take into account the excess match contributions in the ACP test?