"significantly discriminatory" under 1.401(a)(4)-5

[Guest]

Does anyone have any experience with the IRS as to what is acceptable under the "significantly discriminatory" statement under 1.401(a)(4)-5. I have a client that fits Example 1 exactly. I realize that in order to increase benefits, I need to give something to the previous participants, but the question is how much. I would suspect that as long as the NHCEs get 70% of what I give the HCE, I would be fine, but since it says "significantly discriminate" and since 70% passes the standard discrimination test, could I use 50%? Any thoughts?

Do I recommend what I think is reasonble then defend it if the IRS asks, or should I ask for an opinion letter ahead of time?

Has anyone else dealt with this?