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I have a plan where the HCE is deferring .46% and the NHCE's are not deferring. Wouldn't this test pass since it's under the 2% threshold?

Posted
I have a plan where the HCE is deferring .46% and the NHCE's are not deferring. Wouldn't this test pass since it's under the 2% threshold?

No. It's the lesser of 2% difference or 2X the NHCE amount (I'm ignoring the upper 1.25 limit).

So the HCE can defere 2X 0%.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

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