Highly Compensated Employees financial definition of Highly Compensated Employees. Highly Compensated Employees finance term by the Free Online Dictionary.

Highly Compensated Employee

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.

Highly compensated employees. Highly compensated employees are people whose on-the-job earnings are higher than the level the government has established to differentiate this category of worker.

In 2007, that amount is $100,000. It is increased from time to time to reflect the impact of inflation.

The major consequence of being a member of this group is that the percentage of earnings that highly compensated employees may contribute to their 401(k) or similar plan is determined by the contribution rates of other plan participants who earn less.

If lower-paid employees contribute an average of 2% or less, higher-paid employees may contribute up to twice that percentage.

If the average is 3% to 8%, higher-paid employees may contribute two percentage points more than the average. And if the average is 8% or higher, the maximum for highly compensated employees is 1.25 times that average.

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401(k) Benefit Allocation Method Highly Compensated Employee	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 volume's 36 chapters cover types and choices of plans, highly compensated employees, requirements for qualification, eligibility and participation, contribution and benefit limitations, permitted disparity, funding requirements, vesting, distribution requirements, tax and insurance issues, determination letters, IRS and Department of Labor correction programs, reporting requirements, and fiduciary responsibilities. The Pension Answer Book, 2006 ed by Reference & Research Book News	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 historic district	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 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 Highly Elliptical Lunar Orbit

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401(k)
Benefit Allocation Method
Highly Compensated Employee

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 volume's 36 chapters cover types and choices of plans, highly compensated employees, requirements for qualification, eligibility and participation, contribution and benefit limitations, permitted disparity, funding requirements, vesting, distribution requirements, tax and insurance issues, determination letters, IRS and Department of Labor correction programs, reporting requirements, and fiduciary responsibilities.

The Pension Answer Book, 2006 ed by Reference & Research Book News

High Watermark

High withholding tax interest income

High Yield

High Yielder

High-Context Culture

High-Coupon Bond Refunding