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SH excess contribution financial statements question


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Hi all! first time posting here. 

I have a 401k plan where in 2019 plan year a excess SH contribution was identified, the auditors made us move the excess match to "Excess contribution payable" as a liability and reduce the SH contribution line on the financial statements. Nothing was done to schedule H. The excess SH from 2019 was put into the employer's forfeiture account. How do I fix the reconciling payable in the 2020 plan year financial statements? Should that SH excess been a payable at all if the amount was going to go into forfeiture and not paid out by the plan?

Any insight is appreciated. 

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I think most of us would agree that the proper disposition of those funds would be to allocate as profit sharing in 2019, or maybe 2020 if deposited in 2020.  Let's start with - when was it deposited?  Large amount/small amount, multiple participants...?

Welcome to the board, don't mean to give you a hard time on your first post!

Ed Snyder

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