I just received a check from my 401K plan because of this "non-discrimination testing". We were sent a letter concerning this about a month back. I didn't think it would affect us, since it hasn't in the past. BUT IT DID!!! sent me a check for 5K that I have to pay tax on now. I know I'm not the only one recieving a check. I'm guessing that in order to pay more into my 401K, I have to make less? Just doesn't sound right? Anyone know about this? Accepting any advice, or contributions to pay the tax.