Highly Compensated Employee

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An employee who owns 5% or more of the company for which he/she works or who makes more income than a certain amount set by the IRS. For tax purposes, highly compensated employees contribute less in tax deductible earnings to a qualifying retirement plan. This is because IRAs and other retirement plans do not qualify for tax advantages if their structures seem to favor highly compensated employees more than other employees.

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401(k) Benefit Allocation Method Highly Compensated Employees			Highly compensated employees are those employees who were paid more than $105,000 in the past year or own more than a 5 percent interest in the employer. Education and 401(k) participation by Sommese, Donald E. / New Hampshire Business Review The gateway pro-vides minimum benefits for nonhighly compensated employees and is required to allow additional benefits for highly compensated employees under general nondiscrimination testing. Plan design in the balance: weighing the pros and cons of cash ... by Berry, Raymond D. / Journal of Accountancy The requirements for eligibility include: * The employer (plan sponsor) must have fewer than 25 employees at all times during the year; * At least 50% of all eligible employees must elect to make deferrals to the plan in any year; * The deferral percentage for each highly compensated employee must be compared with the average of the deferral percentages of all other employees; and * The plan must meet certain top-heavy minimum contribution requirements for eligible non-key employees. IRS reports high level of SARSEP errors by Nevius, Alistair M. / The Tax Adviser			High Street Bank High Watermark High withholding tax interest income High Yield High Yielder High-Context Culture High-Coupon Bond Refunding High-End High-Grade High-Grade Bond High-Growth High-Low Index High-Premium Convertible Debenture high-rise High-Tech Stock High-Technology Stock High-Valuation Stock high-water mark High-Yield Bond High-Yield Bond Fund High-Yield Financing Higher Rate of Income Tax highest and best use Highjacking Highlight Halftone Highly Compensated Employee Highly Compensated Employees Highly Confident Letter Highly Leveraged Transaction Highly Protected Risk Highs Highway Contract Route Higouriteki Na Baburu Hijrah Calendar Hikine Hindenburg Omen HIPC Initiative Hiperinflacao Hiperinflacion Hipoteca Hipoteca de primer grado Hipoteca de segundo grado Hipoteca de tasa flotante Hipoteca revertida Hipoteca sobre aeronave Hipoteca subordinada Hipotesis del mercado eficiente Hire Hire Purchase Hiring Contract historic cost			highly highly highly highly highly Highly Abstract Object Language Highly Academically Gifted Highly Accelerated Corrosion Testing Highly Accelerated Humidity Stress Test Highly Accelerated Life Test/Testing Highly Accelerated Stress Audit Highly Accelerated Stress Screening Highly Accelerated Stress Test Highly Accelerated Thermal Shock Highly Accurate Cost Estimating Model highly active antiretroviral therapy highly active antiretroviral therapy highly active antiretroviral therapy highly active antiretroviral therapy highly active antiretroviral therapy Highly Active Atrial Natriuretic Peptide Highly Advanced Laboratory for Communications and Astronomy Highly Advanced Loader Operations Highly Advanced Materialising Equipment Highly Automated Logic Highly Available Highly Available Network File System Highly Aware Students Taking Action Highly Charged Ion Highly Coercive Interrogation Highly Compensated Employee Highly compensated employees highly complex test Highly confident letter Highly Confident Letters Highly conserved sequence Highly Contaminated Milk Powder Highly Credible Gastrointestinal Illness Highly Cross-Linked Polyethylene Highly Decomposed Granite Highly Degradable Barley Protein Fraction Highly Dependable Computing and Communication Systems Research highly developed skill highly disciplined Highly Dispersed Highly Dispersed Heat Transfer Highly Dispersible Silica Highly Distributed Environment Highly Distributed Power System Highly Doped Drain Highly Economically Developed Country Highly Educated Crooks Highly Educated Crooks Highly efficient Highly efficient Highly efficient Highly efficient Highly efficient Highly Efficient Embedded Turbine Engine Highly Elliptical Earth Orbit

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