does this constitute a controlled group?

[Lori H]

i do not believe this would be considered a controlled group, however i would appreciate a second opinion. employer 1 sponsors a trad. 401(k)

ownership% ownership%

person or entity employer 1 employer 2

A 25% 24.4%

B(family investment trust of owner A) 24% 24%

C 15% 14.9%

D 2% 2%

E 2% 2%

F 2% 2%

G 20% 0%

H 4% 3.96%

I 6% 5.94%

J(grandchildrens trust of owner H) 0% 19.8%

K(employer 1) 0% 1%

owners c,d,e are related. as are owners g and i.

do i have enough information to determine controlled group status?

many thanks.

[actuarysmith]

You certainly have collected a lot of information. Fortunately, most of it is extranious. (spell checker please!)

You do not appear to have the same five or fewer owners (including family stock attribution) with greater than an 80% overlap.

Therefore, I concur with your analysis that you do not currently have a controlled group.

I would be careful to document your files and warn your client that if any ownership changes take place to call you ASAP!

Also, if they are using a standardized proto document, all members of a controlled are required to participate. If there are any ownership changes in the future, it could affect participation, coverage, and discrimination testing. It could also require you to add the other employer, or use a non-standardized document so they do not have to be included (in the document - still included in testing........)