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New Definition of HCEs?


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Guest Grumpy456
Posted

Page 2 of the May 12, 2008, edition of RIA's Pension & Benefits Week newsletter states that the IRS plans to release proposed regulations defining "highly compensated employees" within the next 12 months. Does anyone know what the IRS is working on and how the proposed regs may change the current definition of HCE? I can't find any commentary on a new or revised definition of "HCE" and would prefer not to be surprised (so many plan designs hinge on the current definition). Apparently, this issue was addressed in their recent 2008 seminannual regulatory agenda.

Thanks!

Guest Grumpy456
Posted

Here's a link to the IRS agenda relating to 414(q):

http://www.reginfo.gov/public/do/eAgendaVi...e?ruleID=286135

It shows a notice of proposed rule making is expected to be published later this year. I have heard through the grapevine that the IRS is contemplating the elimination of the top paid group election--has anyone else heard that? Whether that is "the" or one of the changes is purely speculation on my part.

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