Extra deferral deposited during the year

[Jakyasar]

Hi

Question for 401 gurus.

Non-HCE participant deferred $8,000 on 2022 w-2 (1,000 per paycheck) and terminated after 8 paychecks.

Just found out that they deposited another $1,000 without a paycheck i.e. $9,000 was deposited during 2022.

As only $8,000 was on the w-2, how is this corrected?

Earnings are pennies as all invested in cash.

Thanks

[Brenda Wren]

Technically, it's an employer contribution.  Move it to the forfeiture account, if recordkeeper will let you.  If entitled to other employer contributions, move to another source.

[Jakyasar]

Thank you for the input

[pmacduff]

just curious - if this was a NHCE, how on earth did they deposit the additional $1000 without it going through payroll?

[Jakyasar]

Your guess is as good as mine.

[Lou S.]

Someone probably copied the prior payroll without checking the current one.

[Mr Bagwell]

32 minutes ago, Lou S. said:

Someone probably copied the prior payroll without checking the current one.

And then clearly the employer is not balancing the books, because the extra 1000 should stick out like a sore thumb!!

[Jakyasar]

Sometimes you miss it if you are making a lot of dough. I will suggest Brenda's approach.