Highly Compensated Employee For 2024. The irs defines a highly compensated, or “key,” employee according to the following criteria: Officers making over $225,000 in 2024 (up.

If your employer limits your contribution because you’re a highly compensated employee (hce), the minimum compensation to be counted as an hce is $155,000 in 2024. An hce can be defined as an employee who owned more than 5% of the company at any time during the year (or the year before).