jeanh

this would solve the TH issue also if only employee deferrals and SH?

using current year testing - the HCE who drops below the comp limit to become NHCE will not contribute - so the ADP would be 0% thus limiting the HC to 2%??? is what I thought. I suppose by making it a safe harbor match to NHCE only - then NHCE who is not contributing would get no match and you could avoid the ADP also

what if the employee that is currently highly compensated (not key) falls below compensation level would the remaining HC be limited to 2% deferral?

That is the scenario- one key one non key - both highly compensated - so I think there will be a TH minimum due

Thank you that is what I thought - there are only 2 employees and both are highly compensated- when and if time comes to hire non highly compensated employees they will need to safe harbor I would think

Plan with highly compensated employees only - can they max out on 401k deferral amount (no testing)