Excess Employer Safe Harbor Match

[Theresa]

If an employer over contributed on the 3% safe harbor match for the 2018 plan year, they do have to have the excess taken out by April 15th?

[BG5150]

No.  But is should get done as soon as is feasible.

Excess plus any gains get removed and placed into a suspense account.  Those funds must be used to offset future SH Match until the account is exhausted.

Check out EPCRS section on excess amounts.

[Tom Poje]

just to clarify, the only excess that needs to be removed by April 15th is if there were deferrals over the deferral limit (18,500 for 2018, not including possible catch ups)

There is no 3% safe harbor 'match', I assume you mean 3% safe harbor nonelective (but you are not alone in using that term)

[Luke Bailey]

Assuming it was 3% shn, I don't see how you can get it out of plan unless fits within IRS's "mistake of fact" exception, e.g. arithmetical error.

[Theresa]

Yes it was a 3% nonelective contribution.

[justanotheradmin]

To clarify - the money wouldn't be removed from the plan. It doesn't go back to the employer. If there was too much in the trust as of 12/31/2018 (assuming calendar year plan) we would allocate it as an additional employer contribution, and then have the sponsor move the money from the participant accounts to the correct participant accounts. You allocate it until 415 limits are reached. 

This is older, but may be helpful: See page 27 Suspense Accounts

https://www.irs.gov/pub/irs-tege/epche903.pdf

[C. B. Zeller]

Be careful if the plan's top heavy ratio is >60% - allocating any additional contributions or forfeitures beyond the safe harbor will trigger the top heavy minimums. This could come into play if there are non-key HCEs who are excluded from the safe harbor, for example.