What is family aggregation and family attribution?
In past years, lineal ascendants and descendants of owners, key employees and other HCE’s were considered one employee for purposes of Discrimination testing. Beginning in 1997, Family Aggregation has been repealed. However, family attribution rules of Internal Revenue Code Section 318 still apply. Therefore, spouses, parents and children of owners are still considered as owners for purposes of discrimination and top heavy testing.
