Talk:401(k) Plans

From TaxAlmanac

"The amount that an employee may elect to defer to a 401(k) plan is limited. For the 2006 tax year, an employee cannot elect to defer more than $15,000 for all 401(k) plans in which the employee participates."

So if an employee changes jobs and does get more withheld than the elective deferral limit of $15,500 in my case (under 55) for 2007, what should happen to the overage? Do we ask the employer to move it to 2008 contribution (or something else) or just recognize it in income. I presume publication 525 may address this, but thought I would put the question with this article, so that other users can get a response here.