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.
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