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.
