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Income Tax Planning
Chapter 5: Gross Income from Employment/HCE AND KEY EMPLOYEES
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 5: Gross Income from Employment

HCE AND KEY EMPLOYEES

01.Core Concepts

• Highly Compensated Employee (HCE) • Greater than 5% owner in the current or prior year, or • Compensation in excess of:  $160,000 (2025 income threshold for the 2026 plan year)  $160,000 (2026 income threshold for the 2027 plan year) • Key Employee • Greater than 5% owner, or • Greater than 1% owner with compensation greater than $150,000 (not indexed), or • Officer with compensation greater than:  $235,000 in 2026