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125 participation of owner's son


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Posted

Can a son who is an employee of a mor ethan 2% Sub-S onwer participate in a 125 plan?

Guest Joe Vasko
Posted

Under the rules of family attribution, his son would also be considered as a 2% shareholder. And as you know, 2% shareholders of a Sub S Corp. are prohibited from participation in the plan.

Posted

Joe,

Would this also apply to sole prop's and partners of a partnership?

Thansk

Pat Insall

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