Reversing Commissions - Effect on Plan Contributions

[Guest rocnrols2]

Company X maintains a profit sharing plan for its employees, including sales employees who earn commissions. Under the plan, employees may also make after-tax contributions. During 2002, employee A earned $20,000 in commissions and plan contributions (including after-tax contributions) were made based on these commissions. During 2003, X discovers that $5,000 of A's commissions were not properly earned and it attempts to reverse the treatment. How can the plan recoup the employer contributions and distribute the employee contributions? Under EPCRS, excess amount and overpayment are defined by reference to distributions of amounts over certain limits. To me, this would be an operational violation because contributions were based on amounts that were not properly A's compensation. Any suggestions would be appreciated.