Highly Compensated Employee (HCE) definition
Highly Compensated Employee (HCE) means, for any Plan Year for which the determination is being made (“determination year”):
Highly Compensated Employee (HCE) means (for section 105 purposes) any Employee who is among the highest paid 25% of all employees, one of the highest paid officers, or a shareholder who owns more than 10% of the value of the employer’s stock.
Highly Compensated Employee (HCE) means (for section 105 purposes) any Employee who is among the highest paid 25% of all employees, one of the highest paid
Examples of Highly Compensated Employee (HCE) in a sentence
The Actual Contribution Ratio (ACR) for any Participant who is a Highly Compensated Employee (HCE) and who is eligible to have matching contributions or after-tax Employee contributions allocated to his or her account under two (2) or more plans described in Code Section 401(a), or arrangements described in Code Section 401(k) that are maintained by the same Employer, shall be determined as if the total of such contributions was made under each plan and arrangement.
As a Denny’s Highly Compensated Employee (HCE), you can make limited contributions to the 401(k) Plan; however, you are not eligible to receive the company match.