Substantial Owner - AutomatedPensions.com
Substantial Owner
Categories:Glossary  
Updated: 6/Dec/06 14:29:22
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Substantial Owner

A 10 Percent Owner within the past 5 years. Ownership is measured as interest in capital, profit, or common stock.

Ownership through family attribution applies (under IRC 1563 -- see Ownership Attribution). In particular, ownership is attributed:

  • from spouse - to spouse
  • to or from a parent - to or form a minor child (up to age 21)

The status of Substantia Owner is crucial in determining whether a plan that covers only the owners of a company is subject to PBGC premiums and coverage or not. It is also critical in determining the level of benefits in a covered plan that are guaranteed by the PBGC.


Ownership Attribution
PBGC
Glossary