This is the time of year when most companies with calendar year plans start reviewing their discrimination test to see if they passed or if they have to refund any contributions to the highly compensated employee group. This has become even a bigger issue as more highly compensated employees look to increase their savings for retirement.
A leading reason corporations and business owners offer a qualified retirement plan to employees is to attract and retain sought-after talent. Yet, for a growing number of organizations, the plan has the opposite effect. This is because business owners and executives, who are generally among the most highly compensated employees and often the key talent youre seeking to retain the most face a dilemma in planning for retirement.
