An hce is leaving employment. He wants to defer 100% of his pay. The trustee knows a 100% deferral rate in 2005 would create massive refunds for all other HCE's. Can the trustee impose a maximum deferral amount on this HCE?

Can the trustee set limits for all hce's to prevent these issues, like capping deferrals at 10% for all HCE's?

What is required to do these things?

Thank you

We'll assume you don't really mean the "trustee", but the plan administrator (even if those two roles are filled by the same person, they have different responsibilities).

The PA cannot impose anything, unless the plan authorizes it. Not likely. But perhaps the plan already defines a limit for HCE deferrals?

Just expanding on what pax said. Assuming the plan does not already contain such a provision, the plan can be amended to cap the deferral percentages for HCE's. The plan sponsor would just have to amend the plan and SPD.

What about what our volume submitter document states:
Article 3.1(a)(4) on page 27 of the document. The Administrator can limit an election in order to ensure that the Plan will pass the ADP test.