Too much withheld for 401k in 2021

[micko1]

My husband switched jobs in 2021 and consequent too much was withheld for 401k account in 2021 by $751. We were told it's too late to fix this at the time of filing, even though it was still before the filing deadline.  Consequently, it was added back as other income 1099-R Excess Deferrals on the 2021 return.  Is there any further action that needs to be taken regarding this access contribution?  Does it need to be withdrawn from the 401k account?  What are the consequences on growth from this amount (if any)?  We have not done anythig since the 2021 filing.  Thank you.

[MercieD1]

According to the IRS:

Correcting excess deferrals

The excess deferrals can be corrected by distributing the excess (including earnings) by the due date of your tax return. 

Consequences if excess is not corrected

If the excess is not timely distributed, it is:

1. included in your taxable income for the year contributed, and
2. taxed a second time when the deferrals are ultimately distributed from the plan.

The excess deferrals may not be distributed until a distribution is otherwise permissible under the terms of your plan. Additionally, you do not receive basis in the excess deferrals.