davef Posted March 16, 1999 Posted March 16, 1999 Based on the current 415©(3) definition of compensation (i.e., adding back in deferrals), can someone confirm that you cannot back out 457(B) or (f) deferrals to bring someone below $80,000.
Dan Posted March 16, 1999 Posted March 16, 1999 A non-5% owner is HCE, in determination year, if he received compensation from the employer of more than $80,000, (in look back year) and if the employer elects, was a member of the top-paid group of employees. The compensation amount is not adjusted by deferrals, as you stated. Your code section cite should be sufficient guidance regarding the issue at hand.
Guest Robert Eardley Posted March 29, 1999 Posted March 29, 1999 We represent a nonprofit corporation with a profitsharing and 401k plan. The corporation only has a few employees, with the highest paid being the president who earns $40,000 per year. Under the old HCE rules, at least one officer had to be an HCE. Under these facts do we then have NO HCEs for the plan under the new 414(q) rules? Thanks for the help!
Tom Poje Posted March 29, 1999 Posted March 29, 1999 that would be correct. Officer status only applies to 'key' employee (top heavy determination)
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