Substantial Owner

Definition of "Substantial owner"

AJ  Wallin
  Keller Williams Realty Gulf Coast

Effective proprietor of a business. Under the tax reform act of 1986, a uniform accrual rule prevents a qualified pension plan from being weighted in favor of the substantial owner of the business. The owner can select the accrual method to be applied provided the same method is used for all qualified employees of the business.

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