re: What to do with extra monthly cash flow in my scenario?

quote:

---

Wow I had no idea

---

So if the plan fails, then the HCEs are refunded their money enough to get the percentages to the passing level. Of course, that's income to the HCE.

The whole idea is to ensure that the lower employees take advantage of the plan as well. So in typical government parlance, we punish the successful if the lower employees don't participate at roughly the same percentage levels.