2024 Highly Compensated Employee

2024 Highly Compensated Employee. The threshold for determining who is a highly compensated employee under section 414 (q) (1) (b) increases to $155,000 (from $150,000). For example, an employee is generally highly compensated in 2025 if their 2024 compensation exceeds $155,000.

Generally, a 401 (k) participant can contribute up to $23,000 to a 401 (k) in 2024 ($22,500 in 2023). The threshold for determining who is a highly compensated employee under section 414 (q) (1) (b) increases to $155,000 (from $150,000).