Highly Compensated Employee 401k 2024 Salary

Highly Compensated Employee 401k 2024 Salary. Highly compensated employees (hces) are employees who earn more than the irs maximum allowable compensation for a 401(k) of $155,000 ($150,000 for 2023), or who own more than 5% of a business.  — the determination of who is considered a highly compensated employee is one of the most important factors in maintaining 401(k) plan compliance.

Each year, the irs requires 401 (k) plans to undergo nondiscrimination testing to make sure that a retirement plan does not disproportionately benefit certain employees.  — 3 ways to make an ira contribution.