Back to Glossary

Highly-compensated employee

According to the IRS, a highly-compensated employee (HCE) is an individual who has received compensation of more than $150,000 if the preceding year is 2023 ($135,000 in 2022), or has owned more than 5% of the interest in a business at any time in the preceding year.

Get a 401(k) in as little as 10 minutes

A Human Interest 401(k) plan can connect directly with your favorite payroll provider and has zero transaction fees.

Get Started