Aggregation of excess deferrals of unrelated plans?

[Guest LDH1]

If an employee has worked for two unrelated employers during his or her taxable year and had excess deferrals when those amounts are aggregated, does this only raise a personal tax issue for the employee (inclusion of the excess in gross income) or does it also create a qualification concern for the unrelated plans/employers?

[Guest Rick Butler]

It would appear that it raises a personal tax issue. §1.402(g)-1(e)(4) of the Regulations do not even require that the plan permit distribution of excess deferrals. However, most plan documents do provide for such distributions. If the document provides, the procedures should be followed.