Who Is A Highly Compensated Employee In 2024. Generally, a 401 (k) participant can contribute up to $23,000 to a 401 (k) in 2024 ($22,500 in 2023). The irs defines a highly compensated, or “key,” employee according to the following.

The typical compensation structure for highly compensated employees in 2024 will include a base salary, bonus, stock options, and other forms of. Highly compensated employees (hce) have special rules on contribution limits to their 401 (k)s.