Questions tagged [hce]
5 questions
12
votes
2 answers
How do I know if I am a Highly Compensated Employee?
Does my employer inform me whether or not I am a highly compensated employee? If not, how do I find out, other than getting money refunded at the end of year if my company was over their 401k HCE contribution limit? Do I need to just email Payroll…
Dan A.
- 251
- 1
- 8
4
votes
1 answer
Can an employer limit 401k participation for HCE’s?
I just received a notice from my employer that based on my 2021 income, I’m considered a highly compensated employee for 2022 and not eligible to participate in the company’s 401(k) program for 2022 (technically they’ve set a limit of a 1-time $10…
Guest
- 43
- 2
1
vote
0 answers
Which field of W2 is compared with 130k threshold for NHCE/HCE classification?
I understand that many companies use the 125k/130k/etc fixed threshold for classification of NHCE/HCE employees (whereas others use the 20% rule), which field of W2 is used to determine this?
For example, if you've contributed the full 19.5k to…
cnst
- 495
- 1
- 6
- 17
1
vote
0 answers
401k refund if an HCE front-loads 19.5k, leaves on March 1, and the ADP test fails?
Let's say it's your third calendar year working for a company with no vested employer match; you're classified as HCE. You make a mistake of front-loading 90% of your income in the first two months, exhausting the 19.5k limit, before leaving come…
cnst
- 495
- 1
- 6
- 17
1
vote
0 answers
Can there be different After-Tax contribution limits for HCE and NHCE in a Mega Backdoor Roth 401k?
Is it possible in a 401k plan with Mega Backdoor Roth to have different After-Tax contribution amount limits for each employee depending on whether they're part of the HCE or NHCE group?
For example, if an employee is in the NHCE group, then the…
cnst
- 495
- 1
- 6
- 17