"I'm a plan auditor and have a 401(k) Plan that excludes bonuses from its definition of compensation, so it gets tested under 414(s). The Plan does fail the ADP test and the needed corrections were made. The 414(s) test also appears to fail, but its interesting because the HCE% is 90% and the NHCE ratio is 95%, so it's actually a -5% difference, meaning the test shows that more compensation is being excluded for the HCE group than the NHCE group. Given the rules apply to protect the NHCE group, would you consider this a non-issue for compliance purposes?"

"Plan allows for 59 1/2 withdrawal but only:  the portion of your account being withdrawn has accumulated in the Plan for at least two [2] years. What does that mean? Up to the account balance two years ago? Or everything now minus any contributions in the past 24 months? For example, my account is worth $10,000 now but I added $1,500 in contribs in the past 2 years. Two years ago, the account was worth $7,900. how much can I take? $8,500 or $7,900?"