HCE - Look back Period?

[Guest jkrad]

Is there a year look back period for HCE's?

[ccassetty]

Yes, there is a look back year. It's the 12 month period prior to the testing year. Generally, that will be the prior plan year. It is always a twelve month period, regardless if the prior year was a short plan year. There is a special calendar year election for fiscal year (non-calendar year) plans that allows the plan to use the calendar year beginning in the look back year as the determination/look back year for the compensation test but not for the 5% owner test.