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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!

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