K-t-F Posted February 28, 2005 Posted February 28, 2005 Regardless of actual ownership.... Wife is considered an HCE due to attribution.... right? Its not easy being green
Blinky the 3-eyed Fish Posted February 28, 2005 Posted February 28, 2005 No, that is not right. Now, if you are asking whether or not a spouse is attributed ownership for determining who are the HCE's, the answer is yes. Of course it is possible for there to be a wife of a 4% owner and she would be attributed the 4%, yet not be an HCE because of it. (I am being a stickler, I know.) I highly recommend purchasing a resource book of some kind, whether that be the ERISA Outline Book or Pension Answer Book series. It puts answers to those needed questions at your fingertips, especially if no one is around of which to ask the questions. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
K-t-F Posted March 1, 2005 Author Posted March 1, 2005 Situation: Small company owned by husband Wife EE earns $20K Lookback year same as determination year From Pension Answer Book I am gathering that to be an HCE all the wife needs in her situation is to be a 5% owner of the company through attibution.... she is not an HCE based on her income. My fault in reading the text was that I missed the "or" resulting in thinking she had to pass both tests to be an HCE I understand that if one spouse owned 4% then the other spouse would own 4% ... meaning ownership would not be the reason for HCE determination (just saving face here) Its not easy being green
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