415 Violation/Refunds

[Guest padmin]

Scenario:

Corbel cross tested VS

3 employees 2 hce

401(k) and match

two rate groups owner and non-owners

Company wishes to provide maximum contribution to nhce and 1 hce (owner takes 0)

Problem: Allocation percent for nhce is 41% to reach 40,000 (including k and match) Allocation perecent is 15% for hce to max out at 40,000 (inc k and match)

Document stipulates that allcoations to employees stop when they have reached 415 limit.

Isn't the hce being hurt by deferring. How can we give diefferent er %s to individuals in the same rate group just because of 415.

Any input would be appreciated

Thanks

PADMIN