Thanks for update. I observed below information in IRS site and will impact current 401K plan.
"If the entire deferral is allowed to stay in the plan, the plan may not be a qualified plan"
Excess not withdrawn by April 15. If the employee does not take out the excess deferral by April 15, the excess, though taxable in the year of deferral, is not included in the employee's cost basis in figuring the taxable amount of any eventual benefits or distributions under the plan. In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. Also, if the entire deferral is allowed to stay in the plan, the plan may not be a qualified plan.
Retirement Topics - What Happens When an Employee has Elective Deferrals in Excess of the Limits? | ...
Do you have any insights on this?
