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XYZ covered the following employees under its qualified plan. 1. Rob, a 4% owner and employee with compensation of $32,000. 2. Robin, Robs cousin, a
XYZ covered the following employees under its qualified plan.
1. Rob, a 4% owner and employee with compensation of $32,000.
2. Robin, Robs cousin, a commissioned salesperson with compensation of $195,000 last year (the highest paid employee). Robin owns 2% of the company stock.
3. Randy, the chief operating officer, who had compensation of $160,000 last year, but was not in the top 20% of paid employees.
Assuming the company made the 20% election when determining who is highly compensated, which of the following statements is CORRECT?
- Rob and Robin are both key employees.
- Robin is a key employee, but Rob is not.
- Randy is a key employee, but not a highly compensated employee.
- Neither Rob, Robin, or Randy are highly compensated employees or key employees.
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