HCEAmount returns the 414(q)(1)(B) HCE
Definition dollar
amount for the definition of a highly compensated employee for a given year. An employee is an HCE under the
compensation test (as determined under IRC Section 415(c)(3)) if he or she
received compensation from the employer in excess of the HCEAmount during the lookback year and, if
elected by the employer, is in the top 20% of employees ranked by compensation
(also known as the top-paid group election) for the lookback year.
HCEAmount for year 𝑥 is based on the
following formula:
|
Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟
is the “3rd quarter CPI” (sum of
the CPI-U for the months of July, August, and September) in the given year.
(September CPI is usual published around October 13.) If the amount so determined is not a multiple of $5,000,
it is rounded to the nearest multiple of $5,000. Not less than the amount for
the prior year. Note: ·
Prior to 1987 there was no
amount. ·
From 1987 through 1996, the amount was $75,000, indexed for the increase in 4th quarter CPI ($5,000 rounding beginning in 1995). |
Syntax
HCEAmount (DeterminationYear, [LawYear],
[Inflation])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
|
LawYear |
A
4 digit number. |
|
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |