Section 414 Q 1 B

For 2018 and 2017 it was 120 000.

Section 414 q 1 b. Irs publication 560 retirement plans for small businesses. Section 414 q sets forth two tests for determining if an employee is an hce an ownership test and a compensation test. For purposes of subparagraph a all plans maintained by employers who are treated as a single employer under subsection b c m or o of section 414 shall be treated as 1 plan except that a plan described in clause i of section 410 b 6 c shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan as determined under clause ii of such section.

An employee is an hce if he or she satisfies either of the two tests. The simple contribution limit is the maximum annual contribution that can be made to a simple savings incentive match plan for employees plan. For purposes of subparagraph a all plans maintained by employers who are treated as a single employer under subsection b c m or o of section 414 shall be treated as 1 plan except that a plan described in clause i of section 410 b 6 c shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan as determined under clause ii of such section.

Thus the following entities must be taken into account as a single employer for purposes of determining the employees who are highly compensated employees within the meaning of section 414 q. The limitation used in the definition of a highly compensated employee under code section 414 q 1 b for 2019 is 130 000. Analysis highly compensated employees in general.

The limitation used in the definition of a highly compensated employee under code section 414 q 1 b for 2019 is 125 000. The threshold for determining whether an officer is a key employee under the top heavy rules as well as the cafeteria plan nondiscrimination rules will increase to 185 000 up from 180 000. Internal revenue code section 414 q 1 b definitions and special rules q highly compensated employee.

The highly compensated threshold section 414 q 1 b is the minimum compensation level established to determine highly compensated employees for purposes of nondiscrimination testing.