"Is this correct: If a business has all HCE employees (each earning well in excess of the HCE compensation limit... in fact in excess of the 401(a)(17) limit), when it comes to allocating a PS NEC contribution, can the allocation be discriminatory? Can the owner of the business max out himself and contribute zilch to everyone else? Even pick and choose who might get a NEC contribution? Seems to be passing the tests when I run them all. I've never had this kind of a situation. If all good, I'm pleasantly surprised (and so will the business owner be)."

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"Pooled 401k plan in a brokerage account. Participant L (who does not defer) takes out a loan.... and the office manager who doesn't know any better codes it as pre-tax deferrals. It's a 9/30/24 PYE and the loan was taken in August 2024, so we just discovered it 4+ months in. To the plan, this is a non-issue, right? L owed $200 per paycheck, and that is what was deposited. The only 'allocation' is when we do the recordkeeping, so if we say those are loan repayments, then they are credited as loan repayments. Or do those not count as loan repayments, but rather deferrals.... that weren't asked for? And what about L's W-2? It correctly shows pre-tax deferrals, because that is what happened. Any advice appreciated."