Highly Compensated Employee (HCE) Definition, Pros, & Cons

2025 Highly Compensated Employee. Highly Compensated Employee 401k 2025 Neil King A highly compensated employee is generally someone who owns more than 5% of the company that employs them, or who received compensation of more than $155,000 in 2024 and $160,000 in 2025. The threshold used in the definition of "highly compensated employee" under section 414(q)(1)(B) is increased from $155,000 to $160,000

Highly Compensated Employee 2hdhp Minimum Deductible 2025 Leonard Payne
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A highly compensated employee (HCE) owns at least 5% of the company and earns more than the federal compensation limit Highly compensated employees (HCE) have special rules on contribution limits to their 401(k)s

Highly Compensated Employee 2hdhp Minimum Deductible 2025 Leonard Payne

Highly compensated employees (HCE) have special rules on contribution limits to their 401(k)s District Court for the Eastern District of Texas vacated the Department's 2024 final rule. The DOL's new rule also provides that, beginning July 1, 2027, the salary thresholds will automatically increase every three years based on up-to-date wage data.

How the 2025 Retirement Plan Limits Impact Highly Compensated Employees. District Court for the Eastern District of Texas vacated the Department's 2024 final rule. Highly compensated employees (HCE) have special rules on contribution limits to their 401(k)s

Highly Compensated Individual 2025 Megan Bond. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data The DOL's new rule also provides that, beginning July 1, 2027, the salary thresholds will automatically increase every three years based on up-to-date wage data.