Over Deposits being used to fund QNEC or SH

[jkharvey]

I understand about forfeitures not being available to be used to fund QNEC or SH contributions. If an employer makes an overdeposit into a participant's account in error, I'm thinking those monies could be used to fund a QNEC or SH since they are not true forfeitures. Am I way off base?

Thanks

[Bird]

I would do it.

[SearchLight]

Seems consistent with EPCRS to me - what you're proposing is pretty much exactly what 6.06(2) of EPCRS says to do. The only situation in which I wouldn't take that approach is if the excess allocation is from deferrals, because in that case, distribution to the participant is more appropriate.