March 15, 2014. The deadline for 401(k) testing has come and gone. If your clients are like many employers, they didnt do so well. Which is to say, their 401(k) plan failed to meet the 401(k) discrimination test. In other words, the highly compensated employees contributed more than allowed compared to the non-HCEs.
For 2013, not much they can do about it. They can either return excess contributions to the HCEs or make a contribution for all non-HCEs in an amount sufficient to pass the 401(k) discrimination test. This is called a qualified non-elective contribution (QNEC).
