Different deferral limit for HCE?

[Guest wallacea]

Is it allowable under a 401(k) Plan to have a different deferral limit % for NHCEs than for HCEs?

For example, HCEs limited to 15% up to $11,000, but NHCE limited to 25% up to $11,000?

[Tom Poje]

that should be possible.

your BRF test would consists of

group 1 those with option up to 25% - no hces, so that passes

group 2 those with option up to 15% - this test would include employees who get at least 15%, so that would be everyone, so that would pass as well.

or put another way, general rule is that if you cut back on the hces it ok.

[MGB]

Yes it is allowable to have more restrictions for HCEs than NHCEs. By coincidence, my employer (one of the top 10 consulting firms) uses exactly the limitations you describe for our own plan (I don't see the reasoning for limiting NHCEs to 25% - why would we limit them at all???).