In order to obtain and retain qualified status,a pension or profit-sharing plan must not discriminate in favor of highly compensated employees which include:

Question

Quizplus · Accepted Answer

B  Employees who own more than 5% of the corporation's stock and those who received over $85,000 in compensation in the previous year are considered highly compensated employees under IRS guidelines, and plans must not discriminate in their favor to maintain qualified status.

In Order to Obtain and Retain Qualified Status,a Pension or Profit-Sharing