Highly Compensated Employee 401k 2025 Neil King

2025 Highly Compensated Employee. What Is Considered Highly Compensated Employee For 2025 Ashely Jordana Highly compensated employees (HCEs) are employees who earn more than the IRS maximum allowable compensation for a 401 (k) of $160,000 for 2025 (up from $155,000 for 2024), or who own more than 5%. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data

Learn about highly compensated employees (HCEs), including its definition, eligibility requirements, pros & cons Highly compensated employees (HCEs) are employees who earn more than the IRS maximum allowable compensation for a 401 (k) of $160,000 for 2025 (up from $155,000 for 2024), or who own more than 5%.

How the 2025 Retirement Plan Limits Impact Highly Compensated Employees

Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data A highly compensated employee (HCE) owns at least 5% of the company and earns more than the federal compensation limit Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data

Highly Compensated Individual 2025 Megan Bond. A highly compensated employee is generally someone who owns more than 5% of the company that employs them, or who received compensation of more than $155,000 in 2024 and $160,000 in 2025. Understand what an HCE is and the IRS rules these employees must follow.

How the 2025 Retirement Plan Limits Impact Highly Compensated Employees. District Court for the Eastern District of Texas vacated the Department's 2024 final rule. A recent final rule that will significantly increase the FLSA's annual salary thresholds for the highly compensated employee exemption from overtime pay is causing a dilemma for many employers.