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In order to keep NHCEs at a 3.5% allocation rate, employer wants to limit HCEs to 10.5%, BUT the formula the employer wants to use is:

3.5% of total compensation, plus 16% of compensation in excess of $100,000, if any.

Would adding: "not to exceed a total overall allocation of 10.5% of compensation" cause any problems?

LKP

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