Guest Off_the_record Posted November 12, 1999 Posted November 12, 1999 When drafting an ESOP why would I need to include a definition for Highly Compensated Employee? I can think of no reason. Thanks.
RLL Posted November 12, 1999 Posted November 12, 1999 A definition of "highly compensated employee" is needed to take advantage of the special IRC Sec. 415©(6) allocation limit provision available to leveraged ESOPs. Also, if there is a 410(B) or 401(a)(4) self-correction provision, which must address HCEs.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now