Family Attribution - Owner elects out of plan

[jmartin]

Father A owns 58% of the company. He also elected out of the plan and is not counted towards any testing. His daughter also works for the company as is currently in the plan. Is she considered an HCE/Key employee even though her father is not in the plan? Or does the father have to be in the plan in order for the attribution to kick in.

[ETA Consulting LLC]

Father A owns 58% of the company. He also elected out of the plan and is not counted towards any testing. His daughter also works for the company as is currently in the plan. Is she considered an HCE/Key employee even though her father is not in the plan? Or does the father have to be in the plan in order for the attribution to kick in.

HCE determinations don't consider whether the owner is actually a participant, so she would still be an HCE.

Good Luck!

[BG5150]

Father A owns 58% of the company. He also elected out of the plan and is not counted towards any testing.

for the record, he counts in coverage as not benefiting.