Compensation applies in at least three different ways under the IRC when addressing nondiscrimination requirements for qualified plans. First, when plans are tested for prohibited discrimination in ...

A plan’s definition of “compensation” tends to be one of the trickier aspects of 401(k) administration. Having been asked multiple times in the past 12-months whether deferrals to a nonqualified ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Contributions to your 401(k) plan are calculated as a percentage of an employee’s compensation. Seems simple, right? Not so fast. The definition of “compensation” can actually be quite tricky to apply ...

Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. She has been in the accounting, audit, and tax profession for more than 13 years, working with individuals and a ...

Share-based compensation gives a company's employees equity ownership rights. The objective of share compensation is to align the interests of employees, management and shareholders. The reasoning is ...

A Non-Highly Compensated Employee (NHCE) is an employee who does not meet the income and ownership thresholds defined by the Internal Revenue Service (IRS) for Highly Compensated Employees (HCEs).