Looks like we may have failed our compliance testing because of HCE contributions. My question is, are low paid employees that are related to the owner automatically included in determining our HCE contribution threshold? We are a family owned company so many of our employees are related. We didn't know that relatives of the owner were included as HCE even though they don't make very much.
Got a question? Ask it. We are here to help.
Got an answer? Then Please help others.
This forum is only effective when we all help each other. Everyone is welcome and encouraged to participate.
401K compliance question
| Author | Comment | ||
|---|---|---|---|
 knightsmom1 |
401K compliance question |
Lead | |
|
Posts: 1 (02/28/08 07:54:27) |
|
||
|
fender5150 |
|||
|
Posts: 37 (04/04/08 15:39:08) Contributing Member |
Immediate family members of HCEs are also HCEs. IE: Parents and children of an HCE are also HCEs, if they are eligable to join the plan. Hope this helps.
Thanks, Fender
Last Edited By: fender5150
06/07/08 12:03:49.
Edited 1 times.
|
||
Quick Reply
IMPORTANT NOTICE: Answers are provided as general guidance on the subjects covered in the question and are
not provided as legal, tax or investment advice to the questioner's situation. Individual situations vary. Please consult
your tax, legal or financial advisor for more detailed information and advice.
Visit www.401khelpcenter.com for more help and information on 401k plans.
