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 applicable;
- Encourage your employees to contribute more by adding a matching contribution or through general education; and
- Some plan designs can avoid certain testing altogether, called safe harbor plans, but they require that certain employer contributions be made (~3-4%) and an accelerated vesting schedule.
To implement any of these solutions, please contact our 401(k) Support Team at 855-906-5280 or firstname.lastname@example.org.