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