If a plan has 15 employees 11 of which are considered HCE, what are some amendments that can be made to the plan in order to pass compliance. Should we edit the vesting schedule of HCE employees to include a cliff, make 100% or keep as "NA - Vesting schedule is Top-Heavy Compliant"? Do we also need to add in a safe harbor non-elective contribution in order to be able to make a safe harbor contribution of 3% at year end if necessary? This option states the following: "This amendment only applies to the ADP testing safe harbor under Code section 401(k)(12). If the Plan provides contributions in which the ACP testing safe harbor is necessary, then an advanced notice is required and this amendment may not be used." Can you explain in which cases this amendment should and should not be used? Can you also explain how we can make a 3% contribution at year end and if we need this amendment in order to do so?
