Failure to implement reduction in salary deferral

[R. Butler]

Plan sponsor failed to implement a request to reduce employee deferral withholdings.   Is there a basis for issuing a corrective distribution to the participant or must that be corrected through payroll with the excess amounts that were remitted being moved to the forfeiture account?

My understanding is the latter, but hoping for guidance to the contrary.

Thank you.

[R. Butler]

Never mind on this.  I actually think you can distribute directly to the participant for the same reason the plan could distribute an ineligible deferral directly to the participant.