Excess Deferral and 415 Limit

Let's say an owner who is over 50 deferred $25,000 in 2017. So, the $1,000 is excess deferral and will be refunded by April 15 of 2018. Would the excess $1,000 be counted in the 415 limit? So, if the owner wanted to max out with a Profit Sharing contribution, would he be able to put in $36,000 or $35,000 in 2017?

Thanks.

Does this help?

Quote

1.402(g)-1(e)(1)(ii) Treatment of excess deferrals as employer contributions. For other purposes of the Code, including sections 401(a)(4), 401(k)(3), 404, 409, 411, 412, and 416, excess deferrals must be treated as employer contributions even if they are distributed in accordance with paragraph (e)(2) or (3) of this section. However, excess deferrals of a nonhighly compensated employee are not taken into account under section 401(k)(3) (the actual deferral percentage test) to the extent the excess deferrals are prohibited under section 401(a)(30). Excess deferrals are also treated as employer contributions for purposes of section 415 unless distributed under paragraph (e)(2) or (3) of this section.

this might be a little easier to understand

1.415(c)-1(b)(2)(ii)(D) Excess Deferrals that are distributed in accordance with section 1.402(g)-1(e)(2) or (3) do not give rise to annual additions

so if corrected timely ignore.

Next question:

I know excess deferrals are included in the ADP testing for HCEs but not NHCEs. 

What about the Average Benefits test?