TPApril Posted September 24, 2024 Posted September 24, 2024 Participant pay in 2021 means Participant is HCE in 2022. Participant terminates 12/31/22 with pay $3,000 below HCE limit for 2022 Participant receives last paycheck in 2023 for $5,000 (ie $2,000 over HCE determination for 2022). Pay definition is W-2 so final paycheck not included for plan purposes. Our conclusion is to include Participant in 2023 ADP test as NHCE but wondering of other thoughts?
Bill Presson Posted September 24, 2024 Posted September 24, 2024 I don’t know why you would do anything else. Also, was any of it severance pay that they only received because of the termination? CuseFan 1 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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