A key employee is an employee with a major ownership and/or decision-making role in the business. Key employees are usually highly compensated either monetarily with benefits, or both. Key employees may also receive special benefits as an incentive both to join the company and to stay with th...
Internal Revenue Service Employee Plans Division's release of a list of the common errors encountered in its processing of determination letter requests involving retirement plans. Definition of highly compensated employee; Failure to amend the definition of eligible rollover distribution; Definition of ...
Dollar limitation used in the definition of “highly compensated employee” under IRC Section 414(q)(1)(B) remains unchanged at $130,000. Amount of compensation to be a “key” employee under IRC Section 416(i)(1)(A)(i) remains unchanged at $185,000. Dollar limitation under IRC...
The 2 compliance tests I want to talk about are the ADP (Actual Deferral Percentage) and ACP (Actual Contribution Percentage) tests. Both of these are designed to prevent discrimination in favor of highly compensated employees (HCE’s). For the 2010 period, a highly compensated employee is def...
Chameleon-like IRS revenue agents often change the definition of the trusts' intent depending on the situation they are facing. Nominees and alter egos are two common references to trustee/agents. With the planned destruction of all the trusts' assets and trustee/agents in place the trustee/...
Reports on the United States Internal Revenue Service's examination of issues concerning the definition of a highly compensated employee under section 414(q) of the Internal Revenue Code. Significance of the problem in merger and acquisition situations....
Internal Revenue Service (IRA) is considering a question pertaining to Section 414(q) of the Internal Revenue Code, which provides a definition of highly compensated employee (HCE). Question of whether an individual who is new on the payroll would automatically not be 'highly compensated' in ...