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New plan, existing company, highly comp ee's


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Guest lindamichals
Posted

New plan for 2005, existing company, are there HCE's in 2005?

Posted

Sure, anyone who made over $95,000 in 2005 is HCE in 2006. Doesn't matter that this is plans first year, if the company has been around for a couple years then the look back period is used.

JanetM CPA, MBA

Posted

I think the question was for a new plan in 2005, so you'd look back at 2004 for anyone making more than $90,000 (or a 5% owner). The fact that there was no plan in existence in 2004 doesn't matter.

Ed Snyder

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