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HCE and Key Employee Status Calculator (2026 Plan Year)

What do these figures come to once the work is shown?

Highly compensated employee and key employee status from ownership, prior-year pay, officer status and the top-paid group election.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Highly compensated employee
Yes
Status for the plan year entered
HCE pay threshold
$160,000
Officer key employee threshold
$235,000
Drawn to one scale
HCE pay threshold$160,000
Officer key employee threshold$235,000
1% owner key employee threshold$150,000
All results
MeasureResult
Highly compensated employee
Prior-year pay above $160,000
Yes
Key employee (top-heavy)
Officer paid over $235,000
Yes
HCE pay threshold$160,000
Officer key employee threshold$235,000
1% owner key employee threshold$150,000
How this was worked out
Work shownrecomputed as you type
HCE = more than 5% owner this year or last year, or prior-year pay > $160,000 (and in the top 20% if elected)
Key = officer paid > $235,000, or more than 5% owner, or more than 1% owner paid > $150,000

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • HCE = more than 5% owner this year or last year, or prior-year pay > $160,000 (and in the top 20% if elected)
  • Key = officer paid > $235,000, or more than 5% owner, or more than 1% owner paid > $150,000

How it works

Two different definitions drive plan testing. A highly compensated employee (HCE) is used for the ADP, ACP and coverage tests. A key employee is used for top-heavy status. They overlap but are not the same.

For 2026, Notice 2025-67 keeps the HCE pay threshold at $160,000 and raises the officer key employee threshold to $235,000. The HCE pay test looks at the prior year, so a 2026 plan year uses 2025 pay. The $150,000 amount for a 1 percent owner is written into section 416(i) and is not indexed. Ownership attribution under section 318 is not modeled.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is the top-paid group election?

The employer may add a second HCE condition: the employee must also be in the top 20 percent of employees by pay for the prior year.

How many officers can be key employees?

No more than 50 employees, or if fewer the greater of 3 or 10 percent of employees, are treated as officers.

Does a former employee stay an HCE?

A former employee is an HCE if they were one when they separated, or at any time after age 55.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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