Many company owners actively seek to maximize their 401(k) contributions each year. That’s a great goal, but it can be problematic if your plan fails to meet the nondiscrimination rules.
As a plan sponsor of a qualified retirement plan, you are a fiduciary of your plan. Unfortunately, some don’t know that. Nor do they understand the practical ramifications of this.
You may not recognize that, as a sponsor of a qualified retirement plan, you have a very important fiduciary role based on your control and authority over the administration of your plan.