Highly Compensated Employee

Highly Compensated Employee is used.

with regard to cash or deferred arrangements, any employee who:

1. was a 5% or more owner of the employer, 2. received annual compensation from the employer in excess of an indexed amount ($99,000 for 1994), 3. received annual compensation from the employer in excess of an indexed amount ($66,000 for 1994) and was in the top 20% group for compensation paid by that employer, or.

4. was an officer of the employer and received compensation in excess of 150% of the limit on annual additions to defined contribution plans ($45,000 in 1992).

See also excess contributions. Former IRC (check if this IRC provision is current here) §4l4(q).