Family Attribution

Doctor and Lawyer are married and have a child under age 21.  Doctor (our client) has 401(k) plan.  We are inquiring as to the spouse lawyer as to whether he maintains a plan (our first year admin).   Disregarding the child, they would not be considered a controlled group as they meet the 4-part CG exception and they are not in a community property state.  But my read is that the child trumps all this and does cause them to be a controlled group regardless of the fact that they are not in a community property state. 

Comments? Thanks Tom

The child is 100% owner of both businesses if they both own businesses.

Good Luck!

Any other employees of either business that makes this worrisome?