FAQ 446: HCE--Calculating for next plan year


If I want to run this calculation to determine who will be highly compensated for 2006 do I use the current plan year ending 12/31/2005 or do I need to update for next plan year and run it then?


You can roll the plan forward (Calculations-Update to New Period) and then run the HCE calcs to actually save the HCE results. Or, you can use the current plan with our new options added with the last update. Choose to "Calc Highly Compensated", then uncheck "Use Prior Year Compensation" and check "Calc next year's HCE status". This option does not change any current HCE codes in the plan, it just prints the results only.