For the limitation year 1/1/05 to 12/31/05, a member has an excess annual addition of $1000.00.

All of their deferrals were matched, and the plan document says to prorate the excess from deferrals and match. If the refund was done correctly, then $700 in deferrals would have been refunded and $300 in match would have been forfeited.

Instead, $1000 in deferrals were refunded to the member.

Any idea's on how to remedy this failure? Would it be acceptable to have the member return the overpayment?