Correction of 402(g) excess by amending W2?

Employee participated in two plans during 2022 and went over the 402(g) limit by $1,000.

Can we just remove the funds from the plan and the ER issue a corrected W2?

Before all of the "Nooooooo" answers, consider this:

The ER is already reissuing a new W2 b/c of another, unrelated problem.

Can/should they "correct" the deferral and remove the funds from the plan?  If so, does it get placed int he suspense account or can it be sent back to ER as Mistake of Fact?

Side note, the participant live in CA and has an IRS extension due to the wildfires, so taxes were not filed yet.

This seems like a lot more trouble than just having the plan issue the refund directly to the participant with the appropriate 1099-R.

Isn't it up to the Employee to catch and then request from which plan they want the refund? It's not up to the Employer to fix, it's only the Employer's responsibility to distribute the requested excess amount when requested by the Employee. 

Thing is, the company has to re-do the W2 for other reasons.  So why not knock out two birds w/ a single missile?

Plus, it'll get him out of the double taxation thing.  (It seems the CA extension lasted until 8/15, unless they put in another one in for the recent hurricane.

So you're suggesting to act counter to published guidance regarding excess deferrals, and have the employer alter payroll records to hide what actually happened to fix an employee's issue? I wouldn't do it, but you have fun with that.

Or to put it another way, play a game of audit roulette.