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working from memory here, but I believe it compares the average deferral percentage among "highly compensated employees" to the average deferral percentage among all employees, and the first number can't exceed the second number by more than 2%. If it does, the company will have to return enough contributions to "highly compensated employees" to permit the plan to pass the test.

Just so's everybody knows, I am definitely not a "highly compensated employee" at this company. I'm not even a manager. Practically all the managers make more than I do, and quite a few non-managers do, too.

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