Highly Compensated Employee 2024. As the employee, business owners can contribute up to $23,000 in 2024, or 100% of compensation, whichever is less. Annual compensation for classification of highly compensated employees.
The definition of an hce is set forth in irc section 414 (q). Section 415 benefit limits — defined benefit plans:
An hce is an employee who meets certain income and ownership criteria set forth by the internal revenue.
Owners earning over $155,000 in.
The irs defines a highly compensated, or “key,” employee according to the following criteria:
The threshold for determining who’s a highly compensated employee will increase to $155,000 (up from $150,000).
