Identifying highly compensated employees in an initial or short plan ...

What is nondiscrimination testing? - PeopleKeep

... employees, not just highly-compensated employees (HCEs)1. The federal government initially established these additional tests for 401(k) plans ...

401(k) Plan Compensation – What Employers Need to Know

Usually, this mistake involves the employer excluding forms of compensation (e.g., bonuses, commissions, or overtime) that the definition of ...

What Is Compliance Testing? - Vestwell Help Center

An HCE may also happen to be a key employee, and an NHCE could also potentially be a key employee (< $135,000 in compensation/bottom 80% of ...

Compliance Testing User Guide - Empower - Plan Service Center

This information is necessary to determine the Highly Compensated Employees. We will need this information if the previous plan year was a short plan year ...

Proposed and Temporary Regs Define 'Highly Compensated ...

In many circumstances, highly compensated active employees and highly compensated former employees are considered separately in applying the provisions for ...

How to determine highly compensated employees and key ...

Employees with 2023 compensation that exceeds the 2023 limit of $150,000 are considered HCEs. An employee who does not meet the HCE definition ...

26 USC 414: Definitions and special rules - U.S. Code

... highly compensated and excluded employees under pre-ERISA rules for church plans ... initial eligibility to participate in such plan,. (C) is not ...

Is a Safe Harbor 401(k) Right for You? | Paychex

... plan does not discriminate in favor of highly compensated or key employees. ... plans are designed for small businesses under 10 employees ...

What Is a Highly Compensated Employee? | Definition

Knowing your business's amount of key employees and HCEs can help you determine if you have a top-heavy retirement plan. A top-heavy plan is ...

Highly Compensated Employee (HCE) - Practical Law

For model HCE language to be included in a qualified plan, see Standard Clause, Plan Language, Definition of Highly Compensated Employee. For Fair ...

The Complete Guide to 401(k) Corrective Distributions | ForUsAll Blog

The IRS wants to make sure the 401(k) doesn't disproportionately favor Highly Compensated Employees (HCEs), who are employees that fall into one ...

Secure 2.0 – Update and Analysis on New Retirement Plan Provisions

Required Provision: Catch-Up Contributions as Roth for Highly Compensated Employees January 1, 2026. Starting January 1, 2026, employees ...

Small Employers' Economics of Offering Retirement Savings Plans

Employer costs may include the additional expense of annual nondiscrimination testing to ensure that the plan doesn't favor highly compensated ...

Non-Discrimination Rules - Wall Street Instructors

As a result, employees who receive relatively high pay may be categorized as nonhighly compensated. This increases the plan's chances of passing the ...

Key Information on Mandatory Auto-Enrollment for New 401(k) and ...

The Plan Sponsor benefits too, by raising the average deferral percentage (ADP) for non-highly compensated employees for the purposes of ...

Exempt Going into Overtime - HHM CPAs

Identifying Highly Compensated Employees in an Initial or Short Plan Year | Internal Revenue Service. ... identifying-highly-compensated ...

Prepare for FLSA's New Salary Thresholds for Highly Compensated ...

An employee must meet several criteria before being classified as an HCE. First, the employee must be paid a total annual compensation of at ...

Specified Employees Under IRC Section 409A - Seyfarth Shaw LLP

In determining the 50 most highly compensated officers, the term "officer" is not limited to corporate officers, but includes any employee who has ...

Highly Compensated Employee | Retirement Glossary Term

Ownership test: An employee is considered to be an HCE if he or she owns more than 5% of the company sponsoring the plan at any time during the current or ...

Small Entity Compliance Guide | U.S. Department of Labor

The HCE test's primary purpose is to serve as a streamlined alternative for very highly compensated employees because a very high level of ...