easy · Certified Financial Planner General Principles
Gupta is an employee who earned $170,000 in the 2026 calendar year.
For the purpose of nondiscrimination testing in a 401(k) plan, is Gupta classified as a Highly Compensated Employee (HCE)?
- No, because HCE status requires being an officer of the company.
- Yes, because the 2026 HCE threshold is $160,000.
- No, because the threshold is $184,500.
- Yes, because all employees earning over $150,000 are automatically HCEs.
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