DaemonTargaryen2024 t1_iu560nb wrote on October 28, 2022 at 5:00 PM

https://www.irs.gov/retirement-plans/identifying-highly-compensated-employees-in-an-initial-or-short-plan-year

https://www.investopedia.com/terms/h/highly-compensated-employee.asp

You may not be able to do much about it, but increased participation from all employees is a major factor. Part of the reason you see employer match and auto enrollment: good for those employees anyway but also good for HCEs by balancing the scales.

inima23 OP t1_iu5jcyv wrote on October 28, 2022 at 6:29 PM

Yeah, this is a small company without match and the owner has no interest in helping me figure this out. I've had disbursements sent back to me 2 years in a row and this year I'd like to contribute the full amount. It sounds like I should be able to since last year my income was under the threshold? This year my income will be over the threshold again, so I'm trying to confirm for sure that I can contribute this year, especially knowing that I won't be able to next year. Ughh, so confusing.