Compensation and highly compensated

[Guest P Williamson]

I am working with a plan that limits compensation for sales people to $50,000 for retirement plan purposes. These participants have actual salaries well in excess of $220,000. W-2 compensation applies to all other participants. Are these sales people considered high compensated for discrimination purposes?

[WDIK]

Although the plan may limit compensation for some purposes, that limitation should not apply in determining the status as a highly compensated employee, which is based on compensation received from the employer.