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And you've turned the $300,000 of appreciation that would be taxed as capital gains outside the plan into a qualified plan distribution that is taxed as ordinary income.

If you work with gov't plans, then, the TGPC will give you the deep dive into that marketplace, and equip you with that specialty market knowledge. To be fair, I am the co-author of "The Source: 403(b) & 457(b) plans" which forms the bulk of the curriculum for the designation; thus, may be biased.

You can amend the plan to provide for an in-service distribution. Normal income taxes and the 10% pre-59 1/2 penalty would apply. You would need to figure out where the money for the taxes will come from.

From a nondiscrimination stand point if you pass ACP hard to see where that would fail the BRF test. As long as you can write it into your document you should be fine. Though you might need amendments from time to time as the HCE comp limit changes. One thing to think about is how you will handle a conflict if an HCE terminates early in the year and makes say $30K are they in Tier 1 based on comp or Tier 4 based on being HCE due to prior year comp? It might be moot if you have last day requirement on the match though that is also the one area where 410(b) testing could come into play if you have high turnover. You're allowed to discriminate in favor of one NHCE over another NHCE and you are always allowed to discriminate against HCEs.

I promise no keyboards were harmed in my mathematical excursions!

I've looked at it; in my view it's nothing but a gimmick and there's no reason for it in our practice.