Children, attribution, EZ

[K-t-F]

Straight forward question...

Husband and wife business... want to open an individual 401K plan. Were thinking of also employing a child.

Q/ If they employ the child they will have to file a 5500, not EZ, correct? (EZ instructions state "owner, spouse, partner, spouse of partner". Adding a child constitutes an "Employee other than the owner")

Q/ The child will be considered an HCE due to attribution... so testing should pass no problems, correct?

Thanks!

[WDIK]

I agree with both of your assertions.