re: Can someone elaborate/explain on the Highly Compensated Employee Limitations for a 401k

I think the general thought is it encourages the highly compensated employees(who presumbly would be the ones making the decisions on the implementaion of the 401k plan), to design the plan in a way that encourages participation from the most employees possible, especially those at lower wage bands. If the plan is primarily utilized by a small group of highly-compensated employees who are the least likely to need incentives to save for retirement in the first place, it eliminates the purpose that 401k's were legislated for.