If a Gov't employer realizes they have made contributions in excess of $49,000 this year to a 401(a) plan, can a 415(m) plan be set up by the end of this year to receive the excess contribution, or is it too late and the excess needs to go into a suspense account to be used as a credit next year? I have been told that once the money actually "touches" the plan, any determined excess can not go into the 415(m) plan. They would actually need to have stops in place so that no more than the dollar limit will ever go into the 401(a) and the calculated "excess" goes into the 415(m) directly.

Most plans contain language permitting refund of contributions made by mistake of fact within one year. Correction should be possible, but check enabling plan language or check with the plan's attorney.