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HCE

January 20th, 2012 at 08:00 pm

I received a letter today from my company. I'm now in the category of "HCE - Highly Compensated Employee" and can contribute only up to 10% of my annual salary to 401K.

10% of my annual salary is less than max of 2012 ($17,000)

Crap. Really?

My co-worker told me about this a couple of years ago, and I didn't even care because I was making waaaay less than HCE category.

But my promotion and job change to high cost of living area (salary is adjusted upwards to adjust the cost of living) pushed me into HCE.

I really don't feel like I am making a lot, but I guess I do.

Well, good news is I can still contribute 10% of my salary. I should be happy about that.

Posted in Every day life | 2 Comments »

2 Responses to “HCE”

  1. creditcardfree Says:
    January 20th, 2012 at 08:30 pm 1327091445
    1327091445

    That is a bummer. I'm with you, It seems like you should still be able to max out.

  2. Jerry Says:
    January 22nd, 2012 at 08:15 pm 1327263305
    1327263305

    Well, it's the kind of thing that leads to a mixed blessing, I guess. In this economy, just having a job at all can be a great thing, let alone having insurance and a 401k, so that is great. Still, it would be nice to be able to save more through that vehicle if you are so inclined. Congrats on the upward movement in your work!
    Jerry

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