HCE status determination by attribution

Hi

100% owner Joe marries Jane who has 2 adult children from prior marriage (ignore the 1 year rule)

Joe refers to them as his step-daughters.

Jane and the 2 daughters work for Joe's company.

Jane is an HCE by attribution.

How about step-daughters?

In one case assume they are adopted and in another they are non-adopted.

Any other scenarios?

Thank you

Years ago, one ERISA attorney said that step-children are NOT attributed ownership.  If adopted, they are attributed ownership.

agree with chc93....

4 hours ago, pmacduff said:

agree with chc93...

seconded, or may now it's third-ed.

I'll "fourth" it, just for giggles.

I fifth it. Thank you all

And.... the lucky number is 6.

Agree.

7 come 11...

If you fifth your own are you an alcoholic?

On 12/15/2021 at 1:52 AM, chc93 said:

Years ago, one ERISA attorney said that step-children are NOT attributed ownership.  If adopted, they are attributed ownership.

Right. See IRC sec. 318(a)(1)(B) and draw appropriate negative inference.