Limited partner or other LLC member

[kdubinski]

Three companies A, B, and C.

Company A is a Plan Sponsor of a 401(k) plan.

Companies B and C are participating employers.

Company C is an LLC taxed as a partnership. Employee is a 20% owner of Company C (Limited partner or other LLC member). No compensation on line 14 A of Schedule K-1. He receives a W-2 from company B.

Would Employee be considered a highly compensated employee in the 401(k) plan for discrimination testing?

[Mike Preston]

Yes.

[austin3515]

Doesn't it depend on whether or not there is a controlled group here? Not enough information provided for that determination. If there is not a controlled group then all testing is applied independent of the other entities, including HCE determination.

[kdubinski]

Companies A, B, and C are part of a controlled group. Employee is not an owner of Company A or Company B. As stated above Employee is an owner of Company C (Limited partner or other LLC member). No compensation on line 14 A of Schedule K-1. He receives a W-2 from company B.