"We offered the new maximum DCFSA limit ($7,500), performed the test following our open enrollment period and have one HCE that elected the new maximum $7,500, that needs to be reduced in order to pass the test. My questions are: [1] Since it's possible for us to have another HCE enroll mid-year, am I correct that we have to apply the same reduction to any HCE mid-year enrollees? [2] If yes, how do we determine what the reduced amount should be? [3] Other than exclude HCEs altogether moving forward or setting a low election maximum, is there anything else I'm missing?"

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"Safe harbor 401k plan has a prior inactive discretionary match. For 2026 they are removing the safe harbor match and reinstating the discretionary match. Can the plan document use prior year testing under the first plan year method in order to assume 3% for NHCE's for purposes of the ACP test? I was thinking no since there has previously been a discretionary match and adding it back does create a first plan year."