Who are highly compensated participants under section 125?
A-13: The term “highly compensated participant” means a participant who is an officer, a shareholder owning more than 5 percent of the voting power or value of all classes of stock of the employer, or highly compensated. The classification of a participant as highly compensated for this purpose will be made on the basis of the facts and circumstances of each case. A spouse or a dependent (within the meaning of section 152) of any such “highly compensated participant” will be treated as highly compensated.
