{"id":181,"date":"2008-10-25T08:56:13","date_gmt":"2008-10-25T12:56:13","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=181"},"modified":"2011-10-20T13:38:28","modified_gmt":"2011-10-20T17:38:28","slug":"irs-announces-increase-in-2009-highly-compensated-employee-limitation","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2008\/10\/irs-announces-increase-in-2009-highly-compensated-employee-limitation\/","title":{"rendered":"IRS Announces Increase in 2009 Highly Compensated Employee Limitation"},"content":{"rendered":"<p><span style=\"font-size: 10pt; color: #000000; font-family: Verdana; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;\">In <a href=\"http:\/\/www.irs.gov\/newsroom\/article\/0,,id=187833,00.html\" target=\"_blank\">IR-2008-118<\/a>, the Internal Revenue Service (IRS) announced an increase for 2009 to the Highly Compensated Employee Limitation under <a href=\"http:\/\/frwebgate.access.gpo.gov\/cgi-bin\/getdoc.cgi?dbname=browse_usc&amp;docid=Cite:+26USC414\" target=\"_blank\">\u00a7414(q)(1)(B)<\/a> of the Internal Revenue Code of 1986. Non-discrimination testing in some types of retirement plans limits the deferral rate of \u201chighly compensated employees\u201d (HCEs) based upon the deferral rate (ADP)\u00a0of the \u201cnon-highly compensated employees\u201d. For 2009, an HCE is anyone who was a \u201c5-percent owner\u201d at any time during 2008 or 2009 or anyone who received in excess of $105,000 in compensation during 2008 and, if elected by the employer, is in the top twenty percent of employees based upon compensation. The HCE limit was $100,000 for 2007 and\u00a02008 plan testing. Since the law includes a look-back provision, employees who earned more than $100,000 in 2007 are generally considered HCEs for 2008 plan year testing, employees who will earn more than $105,000 in 2008 are generally considered HCEs for 2009 plan year testing, and employees who will earn more than $110,000 in 2009 are generally considered HCEs for 2010 plan year testing. <\/span><span style=\"font-size: 10pt; font-family: Verdana; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;\">Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have questions on changes to the HCE definition for 2008 and 2009, visit\u00a0<a href=\"https:\/\/old.visionpayroll.com\/kb\/important-facts-and-figures\/\" target=\"_blank\">Important Facts and Figures<\/a>, or\u00a0get <a href=\"https:\/\/old.visionpayroll.com\/kb\/2009\/10\/irs-announces-2010-highly-compensated-employee-limitation\/\" target=\"_blank\">updated information for 2009 and 2010<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In IR-2008-118, the Internal Revenue Service (IRS) announced an increase for 2009 to the Highly Compensated Employee Limitation under \u00a7414(q)(1)(B) of the Internal Revenue Code of 1986. Non-discrimination testing in some types of retirement plans limits the deferral rate of \u201chighly compensated employees\u201d (HCEs) based upon the deferral rate (ADP)\u00a0of the \u201cnon-highly compensated employees\u201d. For [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[429,430,431,434,17,243,435,433,438,436,428,321,422,437,432],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/181"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=181"}],"version-history":[{"count":5,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/181\/revisions"}],"predecessor-version":[{"id":750,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/181\/revisions\/750"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}