--- title: Why Does Your TPA Need Personal & Ownership Details from Company Owners? description: Why does our TPA ask us each year for information about the owners of our company, their family members and other interests they might hold? image: https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_oo_png_category.png --- [![logo](https://www.dwc401k.com/hubfs/_global/logo.svg "logo")](https://www.dwc401k.com/) [![logo](https://www.dwc401k.com/hubfs/Dwc-2019/SVG/logo.svg "logo")](https://www.dwc401k.com/) [![Contribution Limits](https://no-cache.hubspot.com/cta/default/3113501/af3ae025-72b1-41fa-8855-5e196d6c26e4.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/af3ae025-72b1-41fa-8855-5e196d6c26e4) [![Log in](https://no-cache.hubspot.com/cta/default/3113501/3466ce37-58ba-4a93-bddb-0d4c8bb8ccbc.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/3466ce37-58ba-4a93-bddb-0d4c8bb8ccbc) [![services-icon1](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon1.png) ## Plan Document A properly drafted document is the foundation of achieving the company's objectives and keeping the plan in operational compliance. ](https://www.dwc401k.com/services/plan-document) [![services-icon2](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon2.png) ## Plan Compliance We have a fundamental understanding of how critical plan compliance is to both the IRS and Department of Labor. ](https://www.dwc401k.com/services/plan-compliance) [![services-icon3](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon3.svg) ## Defined Benefits Services We work with business owners and investment advisors to determine what makes the most sense by providing a detailed cost benefit analysis. ](https://www.dwc401k.com/services/defined-benefits-services) [![services-icon4](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon4.svg) ## Mergers, Aquisitions & Related Company Analysis The DWC team is well-versed enough in the nuances and is ready to help you navigate the situation. ](https://www.dwc401k.com/services/mergers-acquisitions-analysis) [![services-icon5](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon5.png) ## Plan Corrections DWC's extensive experience with both the IRS and Department of Labor voluntary correction programs allows us to help you address just about any accident that might happen. ](https://www.dwc401k.com/plan-corrections) [![services-icon6](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon6.png) ## Government Audits Being selected for an audit can feel overwhelming, but the process doesn't have to be. ](https://www.dwc401k.com/services/government-audits) ![service-right-icon](https://www.dwc401k.com/hubfs/QOTW/March%202020/service-right-icon.svg) ## Investment Advisor Support DWC has a long history of successfully partnering with investment advisors. 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[ DWC ](https://www.dwc401k.com/blog/author/dwc) | Published: 10/2/2018 | [Highly Compensated Employees](https://www.dwc401k.com/blog/topic/highly-compensated-employees), [Question of the Week (QOTW)](https://www.dwc401k.com/blog/topic/question-of-the-week-qotw), [Controlled Groups](https://www.dwc401k.com/blog/topic/controlled-groups), [Plan Compliance](https://www.dwc401k.com/blog/topic/plan-compliance), [Key Employee](https://www.dwc401k.com/blog/topic/key-employee), [Ownership](https://www.dwc401k.com/blog/topic/ownership), [Operational Overview](https://www.dwc401k.com/blog/topic/operational-overview) ## **Facts** Our company sponsors a 401(k) plan for our employees.  The owners of the company have always been somewhat secretive in terms of sharing detailed information about themselves and their families.  The current environment of selling information for marketing use and identity theft has only intensified that. ## **Question** Why does our TPA ask us each year for information about the owners of our company, their family members and other interests they might hold?  That all seems like personal information that shouldn’t be necessary to share. ## **Answer** We can certainly understand why someone would be reluctant to share certain personal information, especially when it comes to family members.  However, in this case, what might seem like a nosy request is actually a necessary one when it comes to plan compliance. The [nondiscrimination tests](https://www.dwc401k.com/knowledge-center/nondiscrimination-testing-overview) a plan must pass each year compare the benefits of [highly compensated and key employees](https://www.dwc401k.com/knowledge-center/who-are-highly-compensated-and-key-employees) to those of their non-HCE and non-key counterparts.  Because company ownership is a primary component of determining who the HCEs and key employees are, it is critical that those doing the testing have access to ownership information. In addition, having a complete picture of outside ownership interests is critical to determining whether other companies might need to be considered in the nondiscrimination tests.  For example, if the same small group of individuals have overlapping ownership across more than one company, it is possible that all employees of all [commonly-owned companies](https://www.dwc401k.com/knowledge-center/related-companies-controlled-groups) must be counted in the annual tests even if certain of those workers are not part of the plan. Further exacerbating the “nosy factor” is the fact that, in many circumstances, one person’s [ownership in a company is attributed](https://www.dwc401k.com/knowledge-center/ownership-attribution-faqs) to certain family members.  This can be true even if those family members do not work for the company.  For example, a parent’s ownership is always attributed to his or her children under the age of 21.  That means if two parents each own their own companies, their children under age 21 are deemed to own 100% of both companies, requiring that both businesses be combined for purposes of testing the 401(k) plan.  This continues to be true if the parents get divorced or were never married in the first place.  There is attribution from parent to an adopted child but not to a step-child. There is usually, but not always, attribution between spouses.  This is true even when those spouses are estranged but generally not if they are legally separated.  You can see how many of these nuances in the rules require sharing personal details that some may prefer to keep private.  Although it doesn’t change the need to provide the information, making sure that your plan service providers have confidentiality clauses in their service agreements can assuage some of the concern. For more information on nondiscrimination testing and plan compliance, [click here.](https://www.dwc401k.com/qualified-plan-compliance-resources-dwc-knowledge-center) [![Submit Your Question Today](https://no-cache.hubspot.com/cta/default/3113501/ea1283f0-31cd-4e2b-ac92-d185c9da303c.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/ea1283f0-31cd-4e2b-ac92-d185c9da303c) - Share - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.dwc401k.com/blog/why-does-your-tpa-need-personal-information-on-company-ownership&title=Why%20Does%20Your%20TPA%20Need%20Personal%20&%20Ownership%20Details%20from%20Company%20Owners?&picture=https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_oo_png_category.png&description=Why%20does%20our%20TPA%20ask%20us%20each%20year%20for%20information%20about%20the%20owners%20of%20our%20company,%20their%20family%20members%20and%20other%20interests%20they%20might%20hold) - [**](https://twitter.com/share?url=https://www.dwc401k.com/blog/why-does-your-tpa-need-personal-information-on-company-ownership&hashtags=) ## Browse categories [ DWC Developments ](https://www.dwc401k.com/blog/topic/dwc-developments) [ Industry Insights ](https://www.dwc401k.com/blog/topic/industry-insights) [ Regulatory Round-Up ](https://www.dwc401k.com/blog/topic/regulatory-round-up) [ Cash Balance Corner ](https://www.dwc401k.com/blog/topic/cash-balance-corner) [ 401(k) Q&A ](https://www.dwc401k.com/blog/topic/401k-qa) [ Operational Overview ](https://www.dwc401k.com/blog/topic/operational-overview) [ Lessons from Litigation ](https://www.dwc401k.com/blog/topic/lessons-from-litigation) [ Pension Primer ](https://www.dwc401k.com/blog/topic/pension-primer) [ Browse by Topic ](https://www.dwc401k.com/knowledge-center-topics) ## Subscribe to our newsletter ### Only the Best Retirement Industry Content Get our 401(k) and defined benefits content delivered directly to your inbox. 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