PBGC Coverage determination - an interesting one

[Jakyasar]

Hi

Recently applied for a coverage determination with PBGC for the following

LLC filing as a s-corp

Owner is Joe owning 100% and Mary (spouse of Joe) is the other employee, no ownership.

First determination said that the LLC is not a professional entity.

Second determination was for substantial ownership and it was determined that 1563(e) does not apply. The LLC is not treated as a corporation under 1321(d) thus Joe's ownership interest cannot be attributed to Mary and that Mary does not meet the definition of a substantial owner.

Also indicated that Mary is not a substantial owner as only Joe owns 100% of the LLC.

Interesting, right?

Now, for determining HCE status, do we agree 318 steps in here i.e. I do not have to run non-discrimination testing? Top heavy is not an issue as providing way over the limit.

Thanks

[Luke Bailey]

Jakyasar, right. See Temp. Reg. 1.414(q)-1T, Q&As-11 amd -12.