metsfan026 Posted September 21, 2022 Share Posted September 21, 2022 Adult Child #1 - Owns 50% of the company Adult Child #2 - Owns 50% of the company Mom & Dad both also work there, but make under $100k each. So, based on salary they wouldn't be considered HCE for testing purposes. I don't believe the attribution goes up, so they wouldn't be considered HCE for testing either, right? I know that's how it applies for ownership/controlled groups. I just wanted to confirm it's the same for the testing. Thanks everyone! Link to comment Share on other sites More sharing options...
Popular Post Bill Presson Posted September 21, 2022 Popular Post Share Posted September 21, 2022 HCE determination (and lots of other things) is made under section 318 and is different than attribution for controlled groups (section 1563). Under 318, a parent is deemed to own a child's stock no matter the age of the child or the percentage ownership in the business. I love this summary from Lincoln. https://www.lfg.com/wcs-static/pdf/Attribution of Ownership in Retirement Plans - PDF.pdf Dave Baker, CuseFan, Calavera and 6 others 9 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Jakyasar Posted September 21, 2022 Share Posted September 21, 2022 Salary not relevant, all HCEs. If a DB plan, possible PBGC coverage too. Luke Bailey, CuseFan and Bill Presson 3 Link to comment Share on other sites More sharing options...
401kology Posted September 27, 2022 Share Posted September 27, 2022 On 9/21/2022 at 12:11 PM, Bill Presson said: HCE determination (and lots of other things) is made under section 318 and is different than attribution for controlled groups (section 1563). Under 318, a parent is deemed to own a child's stock no matter the age of the child or the percentage ownership in the business. I love this summary from Lincoln. https://www.lfg.com/wcs-static/pdf/Attribution of Ownership in Retirement Plans - PDF.pdf Great summary Bill! RTR! Bill Presson 1 Link to comment Share on other sites More sharing options...
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