Penalty for Y/E match funded after March 15 fails ACP

[legort69]

Is there a 10% penalty for a late refund of a year-end 401k match funded after March 15 that fails ACP ?

 

[Bri]

The instructions to Form 5330 don't indicate any exception.  I suppose if you absolutely KNEW what the match formula would be, and there was already money in their accounts from prior years, you could withdraw from the hard assets rather than the receivable.

And it's not like the sponsor could just pay the person the would-be-refunded amounts early, because that's not a payment from the plan itself.