family attribution

[Guest ROB VIDOVICH]

ABC Company has 3 family members employed..

Son 1 owns 100% of Company Stock

Son 2 owns 0% of Company Stock

Mother of Son 1 and 2 owns 0% of Company Stock

Due to family attribution Mother would be considered owning 100% of Company Stock (Indirectly) because of Son 1. She would then be considered HCE and Key EE.

Would Son 2 also be considered owning 100% of Company Stock (Indirectly) because of his Mother????? Or would this be double attribution????

Thanks...................

[R. Butler]

It is double attribution. There is no attribution to Son #2.