How can we avoid HCE refunds next year?

If your company would like to avoid refunds for Highly Compensated Employees (HCEs), there are several potential resolutions to consider:

  • Add automatic enrollment/escalation to your plan if not already part of your plan design
  • Encourage your employees to contribute more by adding a matching contribution or through general education
  • Consider using a Safe Harbor plan, which includes provisions that certain employer contributions be made with an accelerated vesting schedule. This can reduce the likelihood of needing to make any corrective actions. 

To implement any of these solutions, please contact our Plan Support Team at