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Key Employees - Officer Test


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Posted

I am trying to complete the testing on a DC plan and am having trouble with the officer test when determining key employees. The employee is an officer and has comp for the year exceeding $35,000.

Is $35,000.00 the correct indexed dollar limitation? Or is it $70,000.00?

Posted

The new rules under EGTRA state that an employee will not be treated as a key employee based on his officer status unless the employee earns more than $130,000

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