Retirement, LLC
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Bates & Company
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Retirement Plan Legal Specialist Pentegra
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Nova 401(k) Associates
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Central Pension Fund of the IUOE
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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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Compass Retirement Consulting Group, Inc.
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Carpenter Morse Group
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Trucker Huss, A Professional Corporation
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United 401(k) Plans, Inc.
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Central Pension Fund of the IUOE
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Nicholas Pension Consultants
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Prime Pensions, Inc.
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Question 158: Corporation X owns 51% of Corporation Y. The remaining 49% is held by an ESOP sponsored by Corporation Y for the benefit of Corporation Y's employees. Are X and Y in a controlled group for all tax purposes? |
Answer: Let's move out gradually on possible tax purposes. We'll start with IRC 415(h). That section says that a parent-subsidiary group exists for 415 purposes if the parent owns more than 50% of the subsidiary. Obviously, that applies here. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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