What is the significance of highly compensated employees?
Highly compensated employees might be limited as to what they can defer in 401(k) plans. Also, qualified retirement plans cannot illegally discriminate in favor of highly compensated employees for contributions, and certain coverage testing must be satisfied. We test each plan every year to insure that discrimination testing and coverage testing are satisfied.
Related Questions
- Is there a way around the ADP test, which ties the Owner/Highly Compensated Employees salary deferral amounts to the employees deferral amounts?
- Our highly compensated employees received refunds with the Contribution Nondiscrimination Test. How can our plan be top heavy?
- What can be included in the $100,000 annual compensation for the highly compensated employees exemption?
