A plan’s definition of “compensation” tends to be one of the trickier aspects of 401(k) administration. Having been asked multiple times in the past 12-months whether deferrals to a nonqualified ...

Contributions to your 401(k) plan are calculated as a percentage of an employee’s compensation. Seems simple, right? Not so fast. The definition of “compensation” can actually be quite tricky to apply ...

Compensation applies in at least three different ways under the IRC when addressing nondiscrimination requirements for qualified plans. First, when plans are tested for prohibited discrimination in ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Share-based compensation gives a company's employees equity ownership rights. The objective of share compensation is to align the interests of employees, management and shareholders. The reasoning is ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. JeFreda R. Brown is a financial ...

A Non-Highly Compensated Employee (NHCE) is an employee who does not meet the income and ownership thresholds defined by the Internal Revenue Service (IRS) for Highly Compensated Employees (HCEs).

The CFP Board's definition of “fee-only” has become a point of contention among CFP mark holders. Under CFP rules, an adviser can be called “fee-only” only if he or she receives compensation solely ...

Executive compensation is how a company’s top leaders are paid. Examples include salaries, incentives, benefits, or stock ownership programs. Executive compensation examines how a company’s top ...