What does the IRS use the term "key employees" for?
A)for non-discrimination rules in retirement benefits
B)for non-discrimination rules in health insurance benefits
C)to determine the necessity of top-heavy provisions in employer-sponsored qualified retirement plans
D)to determine the necessity of top-heavy provisions in employer-sponsored health insurance plans

Question

Quizplus · Accepted Answer

The IRS uses the term "key employees" to determine the necessity of top-heavy provisions in employer-sponsored qualified retirement plans. This is in order to prevent highly compensated employees from benefiting more than non-highly compensated employees in such plans.

What Does the IRS Use the Term "Key Employees" For