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	<title>New answer on: What Is A Key Employee For 401K?</title>

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		<title>By: Karl Renwanz</title>

		<link>http://insurancelibrary.com/retirement-plans/what-is-a-key-employee-for-401k</link>

		<dc:creator>Karl Renwanz</dc:creator>

		<pubDate>Thu, 16 Oct 2014 15:34:19 +0000</pubDate>

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		<description><![CDATA[A key employee for a 401k generally refers to top heavy rules for a defined benefit plan.  If greater than 60% of the present value of the cumulative accrued benefits of plan assets come from &quot;key employees&quot;, the plan is considered to be top heavy.

A key employee is an employee that at any time during the year was 1) someone who owned more than 5%, 2) a more than 1% owner who was paid $150,000 or more or 3) an officer that was compensated at more than $170,000 for 2014.

The IRS has a long list of guidelines (IRS 4.72.5) for top-heavy plans and it is best to consult with someone who specializes in this area.]]></description>

		

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