401-K Make-Up Contribution?

A 401k participant had intended to max her 2023 contributions at $22,500 and indicated such to her employer. However, the employers payroll systems didn’t update to reflect the increased maximum for 2023, and instead only maxed the participant’s contributions to $20,500.

In this scenario, is there any precedent for the employee to be able to make a corrective or make-up contribution for 2023, assuming she is able to demonstrate her intention to have had it maxed out in 2023?



The employer would need to make the correction and issue a corrected W-2.  The employer would have to obtain the $2,000 from the employee since it should not have been paid to the employee.

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