Is my daughter an HCE?

[Jakyasar]

For 2023, I owned over 10% of the company and my daughter was an HCE in the pension plan.

Effective 1/1/2024, my son became 100% owner who is also in the plan.

For 2024, is my daughter an HCE as I have no longer an ownership?

[John Feldt ERPA CPC QPA]

Was she attributed more than 5% ownership at any time during the 2 years ending 12/31/2024? That’s your answer.

In 2025 that changes, and now you look at her wages in 2024 and the document for its TPG election, and if TPG applies, you look at all the census data from 2024 to determine if she’s an HCE in 2025.

[CuseFan]

17 hours ago, Jakyasar said:

For 2024, is my daughter an HCE as I have no longer an ownership?

Yes. Since you were >5% owner in 2023, the lookback year for  2024 HCE status, then through ownership attribution your daughter is an HCE for 2024. In 2025, you are still an HCE through attribution from your son but your daughter is no longer considered a >5% owner as there is no sibling attribution nor double attribution (e.g., from son to you and then you to daughter). Assuming your daughter is not an HCE by compensation then she is not an HCE come 2025.