John Feldt ERPA CPC QPA Posted February 5, 2014 Posted February 5, 2014 A 100% business owner of a PC (must be a licensed professional to be the owner) lives and does business in a community property state. The owner has children from a prior marriage and they are employed by the business. These kids are HCEs due to attribution. The owner's spouse also has children from a prior marriage and they are also employed by the business. These kids were never adopted by the business owner. Due to community property rules of the state, this spouse is considered as owning 50% of anything the business owner owns. Due to that, are these kids, the step-kids of the business owner, HCEs? Or is that double attribution?
david rigby Posted February 5, 2014 Posted February 5, 2014 I'll take a stab at this. No. Yes. In that order. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
John Feldt ERPA CPC QPA Posted February 5, 2014 Author Posted February 5, 2014 I found some of Derrin's comments: http://benefitslink.com/modperl/qa.cgi?db=qa_who_is_employer&n=113 and http://benefitslink.com/modperl/qa.cgi?db=qa_who_is_employer&n=138 Based on that, I think they are HCEs. Look at the paragraph near the end in #138 where he changes the facts a little.
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