In case I did not make my point clear, here is why this law sucks...
Let's say the HCE definition is $115,000 (it is adjusted annually, and this figure is probably a few years old now). Anyway, assume the limit for an HCE is 7.5% in this case, which is what it is for me. Below are compensation levels and the amount someone can contribute to 401k at that level:
<$114k === $17,500
$115k === $ 8,625
$150k === $11,250
$200k === $15,000
>$233k === $17,500
Those who ride just above the HCE limit get to really take it for the team.
This post was edited on 4/8 at 1:29 pm