I am currently restricted to a 9.5% contribution rate to my 401k due to imposed limits by my company for HCEs (apparently we failed a test last year). My CFO is telling me that it is illegal for them to allow me to contribute my catch-up amounts (I am 52) and they will not allow me to do so. I fully understand the HCE limitations but am in disagreement about the catchup $s. I want to make those contributions and am getting stonewalled by him, he basically told me to shut up about it.
Our plan does allow catch-up contributions. From everything I have read, including the summary and detailed plan docs and on-line and phone discussions with CPAs, he is dead wrong and is either stupid, stubborn or is just trying to save himself some time and effort at year end. What are my legal remedies for this? I've been advised to find an ERISA lawyer and file suit, another CPA suggested making a complaint to the dept. of labor. Any suggestions on how to get this knucklehead to change his approach short of going the expensive legal route? If I have no other options, I will get a lawyer but that seems extreme for something that my employer is so clearly wrong about.