### Question
Can you define what highly compensated employee means?


### Answer
**Highly compensated employee** is defined as the following in *26 U.S.C. § 414*:

> any employee who, during the year or the preceding year—


(A) was at any time a 5-percent owner,


(B) received compensation from the employer in excess of $75,000,


(C) received compensation from the employer in excess of $50,000 and was in the top-paid group of employees for such year, or


(D) was at any time an officer and received compensation greater than 50 percent of the amount in effect under section 415(b)(1)(A) for such year

#### Citation:
  - *26 U.S.C. § 414*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart B-Special Rules**

