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hard · Certified Financial Planner General Principles

A business owner, Mrs. Beaumont, has a 401(k) plan where the Non-Highly Compensated Employees (NHCEs) have an average deferral rate of 2.0%.

What is the maximum permitted average deferral rate for the Highly Compensated Employees (HCEs) in 2026?

  1. 5.0%
  2. 4.0%
  3. 2.5%
  4. 3.0%

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