Your eligible group can be based on any of the criteria below—
Decide how you want to determine your eligible group.
Remember that with 409A Direct, the minimum number of plan participants is 5
(plus the company must have at least 34 total employees).
Note: The maximum number of employees that can be on a 409A Direct DCP is 15% of your total number of employees.
For example, if you have 100 employees, your plan can have a total of 15 employees in the plan.
Total compensation
Employee class
Job title
Board of directors
Key employees
Highly compensated employees*
*Highly Compensated Employee (HCE): An employee whose compensation will total or exceed $150,000 in 2023.