Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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United Benefit Pensions Inc.
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Aimpoint Pension
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Nicholas Pension Consultants
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Retirement, LLC
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MGKS
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Retirement, LLC
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Hessel & Associates, LLC
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Sentinel Benefits & Financial Group
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Site Manager / Senior Administrator Nicholas Pension Consultants
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Senior Defined Contribution Account Manager Nova 401(k) Associates
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NFL Player Benefit Office
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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Question 67: Corporation Y is owned 100% by Shareholder A. Partnership/LLC X is owned 2% by Shareholder A and 98% by Shareholder A's parents. Shareholder A is 50 years old. Are X and Y under common control within the meaning of Internal Revenue Code section 414(c)? |
Answer: No. Other than the application of 415(h), perhaps the most widely misunderstood provision of the controlled group rules are the parent-child attribution rules. There is attribution from a parent to an adult child of stock in a company if and only if the child already owns, or is deemed to own, more than half of the company. The attribution rules are discussed in more detail in Chapter 7 of my book, Who's the Employer?. |
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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