FAQ 613: HCE--Lineal descendant of owner not HCE in determination


The daughter of a 100% owner is not being coded as an HCE in the HCE/key determination.


Be sure that you have the "Lineal Desc/Asc. Code" and "Family Code" with the same number in both the daugther's and the father's record. You also need both codes in both employee's history records, especially if you are running the HCE determination as of the prior plan year.