Excess deferrals for 457(b) plan

[Guest dani_o]

A group has a 457(B) DCP plan. Somehow a participant who has an annual limit of $12,000 this year (age 50+), has already overcontributed by $600. However, taxes were taken out of this $600, i.e. it did not come out pre-tax. The group is now asking how to handle this excess deferral. I thought we could just ask the TPA to return the money and because taxes were already paid the W-2 would be correct. However, the group is not liking this. I don't know any other option. They are concerned about double taxation. Do you know the proper way to handle?:confused: