United Benefit Pensions Inc.
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Retirement, LLC
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Sentinel Benefits & Financial Group
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Hessel & Associates, LLC
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Retirement, LLC
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Senior Defined Contribution Account Manager Nova 401(k) Associates
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Nicholas Pension Consultants
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Aimpoint Pension
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Site Manager / Senior Administrator Nicholas Pension Consultants
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NFL Player Benefit Office
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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MGKS
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Question 95: Husband owns 100% of a business, as his separate property. Wife and Wife's parents are employees of the business. I believe Wife is an HCE because she is deemed to own her husband's stock, but I'm not sure about the parents. Because they don't contribute much to the 401(k), it would help the ADP test if they were HCEs. Any suggestions? |
Answer: The attribution rules applicable to determining highly compensated employees are the same rules used to determine Affiliated Service Group status. They are contained in Internal Revenue Code section 318. Under those rules, there is always attribution between husband and wife and between parent and child. |
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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