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Fair point, and I made the same assumption. Nevertheless it still is a concern to me and for that matter since it is a db plan it would seem to make overall sense from a tax perspective for the employer entity to paying those expenses, rather than the plan (unless it is clearly overfunded).

No. A limit on the amount of deferrals for the HCE group would have to be done by plan amendment. The limit would have to be definitely determinable and not subject to employer discretion. Being an amendment, the usual rules around amendments apply. SMM is needed, 411(d)(6) applies, etc. There are 4 and only 4 ways that deferrals can be reclassified as catch-up. Those are: Exceed the 402(g) limit Exceed the 415(c) limit Exceed a plan-imposed limit Excess contributions resulting from a failed ADP test, reclassified as catch-up rather than being distributed If you adopt an amendment to limit deferrals, then deferrals in excess of the stated limit would automatically be reclassified as catch-up. Assuming, of course, your plan document permits it, which if it a volume submitter document it almost certainly does.

No, but the violation technically renders any rollovers of the elective deferrals invalid. Suppose everyone rolled over their account balance. So my question is, what methods might be employed and approved by the IRS to remove this result? I suppose one could technically somehow get the invalid rollovers restored to the terminated plan, but this seems realistically impossible. So I'm interested to see if anyone has experienced this, or knows of a valid correction method? Thanks.

The Advisor is telling you it is a termination distribution qualifying for extended rollover. The "deemed distributed" terminology is inconsistent. Keep a copy of the advisor's communication (I'm assuming it was written) and if they put Code L in your 1099-R, then make them correct it next year.

Loan offsets are eligible rollover distributions. Loan offsets occurring in 2018 or later have the extended time period to roll over an amount equal to the loan balance. (The regulation I quoted above has not been updated to reflect the 2018 change.) A deemed loan is not an eligible rollover distribution. Deemed vs Offset is a technical distinction. In your case, the determination is easy. The text at the bottom of your original post says the outstanding loan balance is immediately due and payable upon termination of employment. It also says that failure to pay any installment when due constitutes a default. That is the situation the text I put in bold above says is a loan offset. You said your last day was 1/2/18. If your loan payments were current through 12/31/17, the loan offset occurred in 2018.