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Thank you for your explanation.

The top-heavy rules (which is what we are dealing with here) came about as a result of the abuses of some company's -- they administered the plan for the owners and HCE benefit while keeping the "rank and file" retirement benefits at zero or very low.

It seems a better way of handling the abuses is to require certain minimum benefits for the "rank and file", rather than penalizing the "lower-paid" HCE.

Everyone always quotes the $10,500 as being "the cap". Due to the imposition of the 13% max contribution rate for "lower compensated employees" and 6% cap for HCE, my company seems to still be getting away with such abuses whereby for the most part you must make $175,000+ to participate in "the cap". Is my company atypical in that the real cap is significantly lower for about 95% of employees?
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