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Controlled group becomes unrelated mid year


mattmc82
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Company A and Company B are part of a controlled group that sponsor a safe harbor profit sharing plan. Both companies are sold midyear to unrelated. Assume acquiring entities do not own any other companies. Can Company B create their own plan midyear AFTER the transaction? I know transition rules provide some relief for mergers, but I am having trouble finding guidance on when a controlled group of employers becomes unrelated midyear. the safe harbor provisions makes me lean towards that this has to be a MEP until years' end. Thoughts?

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