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Family attribution father owns 100% of Company and daughters and grand


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Guest ROB VIDOVICH
Posted

Family Attribution:

Father owns 100% of Company and his three Daughters are employed by the Company. Also, one of the daughter's spouse works for the Company and earned over $80,000 in the previous plan year and is an officer of the Company. Both children of one of the daughters works for the Company. None of the daughters made over $80,000.00 in the previous plan year nor did the children/Grandchildren. Who is highly Compensated?????

Spouse of Daughter is because of previous year compensation of greater than $80,000. Is he also considered greater than 5% owner due to marriage???

Are all the daughters considered greater than 5% owners?????

Are both children of one of the daughter's who are considered grandchildren greater than 5% owners?????

Would there be double attribution between the one daughter and her spouse???? Or double attribution between the one daughter and her children/grandchildren??????

Posted

an individual is treated as owning any interest that is owned by the individuals spouse, children, grandchildren or parents.

so...

Father - 100% owner

all daughters own by attribution

the daughter's children do not own from their mom -that would be double attribution.

the spouse might be HCE - not by (double)attribution, but because comp > 80,000. depends on if you sue top paid group or not. officer status has no bearing, but it would probably make him a key employee.

kids are strange. Father -> daughter no further attribution

but if kid owned then kid->mother->grandparent

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