How do you determine if your compensation classes you as a HCE? Is it box 1, box 5 or which box on the W2 that you look at and compare to the limit?

Forum|Forum|5 years ago
November 3, 2020
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For 2020, HCE are those employees over $130,000 in compensation, unless your company uses the 20% rule.

TurboTax Online

For the 2020 plan year, an employee who earns more than $125,000 in 2019 is an HCE. For the 2021 plan year, an employee who earns more than $130,000 in 2020 is an HCE. Source: IRS Notice 2019-59. View the SHRM Online article 401(k) Contribution Limit Rises to $19,500 in 2020.

https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/irs-index-limits-chart-2020.aspx#:~:text=For%20the%202020%20plan%20year,Rises%20to%20%2419%2C500%20in%202020.