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unforeseen acquisition


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Recently had an advisor present a scenario where Company A (the client) has a SIMPLE IRA and planned to proceed with the Plan for 2022; however, an unplanned acquisition (believed to be stock) just occurred and Company B (acquired company) has an existing 401(k) Plan.  The transition rule could cover this but the employer is asking if they could take over the 401(k) and put both Company A & Company B employees in that rather than one group in the (k) Plan and one group in the SIMPLE IRA.   

I could not find anything to support this but assuming it would not be a benefit cutback is there any relief, for the employer, if the employees get a term notice, albeit after the 11/02 deadline and the employees are receiving a better benefit?

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