Exceeded 402g limit - timing of return

[cpc0506]

Client just called and one of his employees works for another company and the employee has determined that he contributed too much in salary deferrals and now has a 402g limit issue.

Can the funds with earnings be returned now or do we have to wait until 2018 has ended and return the funds in 2019 before April 15, 2019?

[ETA Consulting LLC]

They can be returned now under the plan's procedures for correcting a 402(g) with plans of different employers.  There is no rule saying they must wait until 2019.

Good Luck!