Family attribution causes 3%-owner husband and 3%-owner wife to be a 6

[Guest ANNEBV]

Company has 2 NHCEs who are husband and wife. Both are 3% owners. When family attribution rules are applied, do both husband and wife become > 5% owners, thus making them HCEs by ownership?

[Guest bill mahoney]

According to CCHs Pension Guide for 1999 the family attributionrule still applies. Therefore because they each own 3% and combined own 6% the 5% hce rule applies.

Bill Mahoney

Mutual FUNDamentals

[Alf]

Yes, the shares of one are attriubted to the other under cross references in 414(q) to the attribution rules of 416 and 318. What you can't do is use his total attributed ownership of 6% and re-attribute that to here making her a 12% owner.