402(g) taxation quick and easy(?)

[BG5150]

For 402(g) excesses taken BEFORE April 15 after year in question:

Gross amount: taxed for year in question. If distributed before Dec 31, 1099-R code is 8. Between 1/1 and 4/15, it's P.

Earnings: taxed in year of distribution. Code 8.

For 402(g) excesses taken AFTER April 15 after year in question:

Gross amount: Taxed in year in question AND year of distribution. 1099-R codes P and 8.

Earnings: taxable in year of distribution. Code 8.

Does this also apply to impermissible deferrals (eg before becoming eligible) or if going over a plan limit (eg deferring 11% when plan limit is 10%)

[BG5150]

no one?

[Tom Poje]

impermissible deferral is only a violation of the terms of the document, not of the code/regulation pertaining to excess deferrals

so I would think you simply get taxed when the corrective distribution is made. not any different than a failed ADP test distribution