Overpayment of Corrective Contribution in Prior Year

[panther]

Employer failed ADP test for 2002 and distributed excess deferrals to HCEs within 2-1/2 months after end of 2002. Because of a plan correction, the Employer had to re-run its ADP test and discovers it distributed out too much in corrective contributions to its HCEs in 2002. What is the correction method? The catchall overpayment provision in Section 6 of Rev. Proc. 2008-50 says the employer is to request the money back but if the employee does not refund it, then the money must be paid back into the plan by the employer if no one else pays. The Employer would just like to issue a 1099-R as to any un-reimbursed amounts so that the employ just pays 10% early distribution tax on un-reimbursed amounts.