Guest richez Posted January 27, 2004 Posted January 27, 2004 For purposes of the ACP test, is a non employee owner, who participates in the active day to day mangement, considered an HCE? What if they are NOT actively participating in the day to day management of the company? What if they are married to a paid HCE employee? What if they are married to a non paid HCE actively participating in the day to day management of the company? Thanks.
Mike Preston Posted January 27, 2004 Posted January 27, 2004 All of this boils down to one thing: compensation. Does this individual get any? If the answer is "no", then that person doesn't count in the ADP test. Does that clarify things?
doombuggy Posted January 27, 2004 Posted January 27, 2004 I agree with the previous poster. If no comp, then he should not be on the test, regardless of who he's married or related to. QKA, QPA, ERPA
Guest JimD Posted January 29, 2004 Posted January 29, 2004 If he is not an employee of the company he is not in the plan so he is not in the test. If he is being paid he is an employee and if he is in the plan he is in the test.
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