highly compensated employee
(3) Contribution requirements (A) In general The requirements of this paragraph are met if, under the plan the employer is required, without regard to whether a qualified employee makes any salary reduction contribution, to make a contribution to provide qualified benefits under the plan on behalf of each qualified employee in an amount equal to— (i) a uniform percentage (not less than 2 percent) of the employee’s compensation for the plan year, or (ii) an amount which is not less than the lesser of— (I) 6 percent of the employee’s compensation for the plan year, or (II) twice the amount of the salary reduction contributions of each qualified employee. (B) Matching contributions on behalf of highly compensated and key employees The requirements of subparagraph (A)(ii) shall not be treated as met if, under the plan, the rate of contributions with respect to any salary reduction contribution of a highly compensated or key employee at any rate of contribution is greater than that with respect to an employee who is not a highly compensated or key employee. (C) Additional contributions Subject to subparagraph (B), nothing in this paragraph shall be treated as prohibiting an employer from making contributions to provide qualified benefits under the plan in addition to contributions required under subparagraph (A). (D) Definitions For purposes of this paragraph— (i) Salary reduction contribution The term “salary reduction contribution” means, with respect to a cafeteria plan, any amount which is contributed to the plan at the election of the employee and which is not includible in gross income by reason of this section. (ii) Qualified employee The term “qualified employee” means, with respect to a cafeteria plan, any employee who is not a highly compensated or key employee and who is eligible to participate in the plan. (iii) Highly compensated employee The term “highly compensated employee” has the meaning given such term by section 414(q). (iv) Key employee The term “key employee” has the meaning given such term by section 416(i).