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Not having kept adequate records itself, sorry to say but the first place for the plan to complain is while standing in front of a mirror! Is there a reason why the former TPA is not being cooperative?

Easy for us to say, and I agree, but in the real world there are no consequences for such errors, unless it comes down to a monetary issue. The plan sponsor sees it as us arguing with the p/r company over how many angels fit on the head of a pin.

Because SIMPLE IRA assets are held in...IRAs, the concept of a merger is inapplicable. You could start a 401(k) and allow participants to roll over their SIMPLE balances, but it's their choice. If you do start a 401(k), it invalidates the SIMPLE, so the usual recommendation is not to start a 401(k) in the same year, but if you don't mind a lot of messiness, it can be done. That is, the 401(k) doesn't have a problem, but the SIMPLE does.

I though Pammie57 just wanted to know if the QNEC can also be used to satisfy the Top Heavy required minimum contribution. The answer is yes. From Treas. Reg. 1.416-1: M-18 Q. May qualified nonelective contributions described in section 401(m)(4)(C) be treated as employer contributions for purposes of the minimum contribution or benefit requirement of section 416? A. Yes. This is the case even if the qualified nonelective contributions are taken into account under the actual deferral percentage test of § 1.401(k)-1(b)(2) or under the actual contribution percentage test of § 1.401(m)-1(b). Mike

All of this is covered in Sal's Book, Chapter 11, even the hardship stuff.