Looking for guidance on following situation:
If someone works for two employers who both offer 401k. Is the HCE qualification based on the compensation from the EMPLOYER for which the employee chooses to opt for 401K (or) HCE qualification is determined based on total compensation across both employers?
Employer A wages are say 100K. Employer B wages are say 100K (Both employers are small, like 10 member companies). Both employers using same payroll provider, assume ADP.
If Employee would like to use "Employer A" provided 401K service and contribute the 20,500 towards 401k, would it be an issue because the total wage is more than allowed 130K or so.
Appreciate any inputs on this. Thanks!