Stock Attribution and Controlled Group Determination

[Guest EMM118]

An individual who has a business that employs commom law employees is considering establishing a C-corp that will be owned by an irrevocable trust. The C-corp. will establish and maintain a qualified plan for the benefit of this one employee. Under Code Section 1563, is it only important that the plan be established after the irrevocable trust is established and stock in the C-corp. is transferred to avoid a controlled group existing? Does the fact that a controlled group might have existed prior to the transfer taint (1) the entire year or (2) the entire structure? I'm aware of the other concerns. At this point, I am only looking at the stock attribution rules. Thanks in advance. Ed

[Guest Pensions in Paradise]

You really should consult an ERISA attorney. Those who think they are clever usually get burned.