Definitions
For purposes of this paragraph—
(i) Highly compensated employee
(i)Highly compensated employee#
The term “highly compensated employee” has the meaning given such term by section 414(q).
(ii)Nonhighly compensated work force#
The term “nonhighly compensated work force” means the aggregate number of individuals (other than highly compensated employees)—
(I) who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or
(II) who are leased employees with respect to the recipient (determined without regard to this paragraph).
(ii)(I)#
who are employees of the recipient (without regard to this subsection) and have performed services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, or
(ii)(II)#
who are leased employees with respect to the recipient (determined without regard to this paragraph).
(iii)Compensation#
The term “compensation” has the same meaning as when used in section 415; except that such term shall include—
(I) any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(e)(3) or 402(h)(1)(B),
(II) any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and
(III) any amount contributed to an annuity contract described in section 403(b) pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).
(iii)(I)#
any employer contribution under a qualified cash or deferred arrangement to the extent not included in gross income under section 402(e)(3) or 402(h)(1)(B),
(iii)(II)#
any amount which the employee would have received in cash but for an election under a cafeteria plan (within the meaning of section 125), and