For example, an employee is generally highly compensated in 2025 if their 2024 compensation exceeds $155,000. The final rule will increase the standard salary level and the highly compensated employee total annual compensation threshold on the rule’s effective date on july 1, 2024, and on.
The determination of who is considered a highly compensated employee is one of the most important factors in maintaining 401(k) plan compliance. The rule will also increase the total annual compensation requirement for highly compensated employees (who are not entitled to overtime pay under the flsa if.
Learn About The 401K Contribution Limits For Highly Compensated Employees (Hces).
The irs defines a highly compensated, or “key,” employee according to the following criteria:
The Final Rule Will Increase The Standard Salary Level And The Highly Compensated Employee Total Annual Compensation Threshold On The Rule’s Effective Date On July 1, 2024, And On.
Highly compensated employees may face additional limits on contributions.
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What Is A Highly Compensated Employee?
Employees also may be highly compensated based.
Highly Compensated Employees May Face Additional Limits On Contributions.
The rule will also increase the total annual compensation requirement for highly compensated employees (who are not entitled to overtime pay under the flsa if.