Definitions for "highly compensated employee"
For the purposes of retirement plans, an employee who owns 5% or more of a company...
An employee who, (1) during the current or preceding year, is or was a more than 5 percent owner, or (2) received compensation in excess of the specified dollar limit for the preceding year.
Highly Compensated Employees are defined as those Employees who: (1) are 5% owners during the year or the preceding year, or (2) for the preceding year have compensation from the Employer greater than $85,000. This amount is indexed periodically by the IRS.