company ABC is 100% owned by Mr. D. his mother and grandfaher own 50-50 company XYZ. (There is no asg) Mr D works for XYZ.
controlled group b/c of double attribution?

thanks

How old is Mr. D?

Wait a second, age of Mr. D shouldn't matter. I don't see a controlled group. There is no double attribution.

As always, I recommend consulting an ERISA attorney. But since I no longer have any ego or dignity (after enough years in this business) and I don't mind appearing to be a bonehead, I'll give you my opinion.

No. I don't read 1563(e)(6)(B) to make this a controlled group. Neither mother nor grandfather owns MORE than 50% of the stock in XYZ, therefore there is no attribution between mother and grandfather, and no attribution from Mr. D. to either mother or grandfather.

No doubt someone else can point out the flaws in my thinking.

There may be attribution from Mr. D to mom if Mr. D is under 21, but there is no attribution to or from granddad. At most mom is deemed to own 100% of ABC & 50% actual ownership in XYZ.

I should add that I was making an assumption (perhaps unwarranted) that Mr. D is an adult.

I dont see C/D if Mr. D is over 21.

R. Butler... why is mom 100% owner of ABC? (at most)

Lets assume Mr. D is under 21. It is pretty safe to assume mom is over 21.

Mom is attributed 100% of ABC. She still only owns 50% of XYZ. Nothing will be attributed from granddad because mom doesn't own more than 50%.

Mr. D is deemed to own mom's 50% of XYZ, but again nothing attributed from granddad to Mr.D because Mr. D doesn't own more than 50%. The fact that Mr. D is under 21 is irrelevant in determing attribution from a grandparent.

So at most we have 100% ownership in ABC & 50% in XYZ.