Key Employee -
Key Employee
Updated: 8/Nov/06 11:50:30
Search for:
Advanced Search

Key Employee

Satisfies one or more of the following definitions:

  • Someone who owns more than 5% of the company (a " 5 Percent Owner ").
  • Someone who owns more than 1% of the company (a " 1 Percent Owner ") and makes more than $150,000 .
  • An officer who makes more than $145,000 (2007 level, COLA indexed) a year.

(Prior to 2002 there were more conditions.)

The status of a plan as Top Heavy is based on the portion of benefits in the plan that belongs to Key Employees vs. Non-Key Employees.

See also Comparison Of Key And Highly Compensated Employees

Highly Compensated Employee
Non-Key Employee
Ownership Attribution