I understand that the regulations do not require earnings to be calculated on excess contributions during the gap period if the plan so provides. So if the gap period turns out to be an 11 month period (for example) a participant's excess contribution will not have any earnings or losses during this 11 month gap period. I find this to be a little strange or unfair to the participant? Am I missing something?

Is it unfair to the participant to allow earnings to remain in a pretax account?