How to handle 401(k) excess deferrals like a pro

Employees are often advised to max out their 401(k) contributions up to the annual pretax limit ($23,500 for 2025). But contributing too much can have an unintended side effect: Your plan can be disqualified. The IRS has posted an issue snapshot for its 401(k) plan auditors on excess deferrals. You can use it to ensure excess deferrals are corrected expeditiously.