Top heavy in multiple employer plan

[pmacduff]

Here's the setup...

Company A = Owner #1 50% and Owner #2 50%

Company B = same Owner #1 20% ; same Owner #2 20%, Owner #3 20%, Owner #4 20% and Owner #5 20%

All of these owners receive payroll under only Company A and the owners plan balances are all under Company A.

Do you concur that for top heavy determination purposes on Company A I use only the balances for Owner #1 and Owner #2?

[Jim Chad]

Did owners 3,4, or 5 ever own any of company A? When?

[pmacduff]

No - the ownership for both Companies has always been the same - 3,4 & 5 never had any ownership in Co A.

[pmacduff]

Can I push this back up?...Jim...anything......??

[12AX7]

Unless there is constructive ownership through family attribution, I don't see a controlled group in this situation.

[Lou S.]

I agree with 12ax7, no CG here. Unless you have ASG or family attribution issues then owners 3, 4 and 5 are not key in by virtue of the more than 5% or more than 1%/comp so unless they are key by officer/comp they are not key in the determination.