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Note, there are rules that limit the aggregation of safe harbor plans with other plans for coverage and nondiscrimination testing. In all likelihood, you will need to meet coverage in the two SH plans separately for 2025 (i.e., as if both plans excluded all other employees). Also, check the plans to make sure that they don't cover the other entities by their terms. You could have some people being covered accidentally in more than one plan. Last but not least, there are rules about modifying safe harbor plans mid-year. These rules may prevent you from merging anytime other than the first day of plan year. So, in other words, therre is a lot to think about here. Consider legal counsel (regardless of whether it's me or someone else). M&A is complex and shouldn't be handled without knowledgeable advice, IMO.

You know that post was from 9 years ago? That's a no, LOL.

Amendments increasing benefits for HCEs are excluded from the calculation of the cushion amount only. In other words, the maximum deduction is equal to Funding target + Target normal cost + 50%*(Funding target without amendment) - Assets Since the amendment didn't affect the funding target, there is no adjustment to the cushion in your case. You will most likely have to do the adjustment for 2025, as the increase in the 2024 accrual (evident from the increase in the target normal cost) will become part of the 2025 funding target.

HA! Better you than me Bill

Understood. We appreciate all the SDBA plans we get because you don't do them. 😇

Rev. Proc. 2021-30, Section 6 (5) Special exceptions to full correction. .... (b) Delivery of small benefits. If the total corrective distribution due a participant or beneficiary is $75 or less, the Plan Sponsor is not required to make the corrective distribution if the reasonable direct costs of processing and delivering the distribution to the participant or beneficiary would exceed the amount of the distribution. This section 6.02(5)(b) does not apply to corrective contributions. Corrective contributions are required to be made with respect to a current or former participant, without regard to the amount of the corrective contributions So, under EPCRS, the corrective contribution should be made to the plan and, because the balance is under $75 (or the applicable fee), a distribution to the former participant does not have to be made and the contribution can be forfeited back to the plan.

Asset sale, so the company/plan sponsor continues to exist, just doesn't have any assets (except cash). Unless buy/sell says otherwise, seller still maintains (and has responsibility for) the Plan and it can remain open indefinitely, until the sponsor terminates it.

We had a very very brilliant attorney say it could be considered a taxable fringe (edit: I'm not being sarcastic here by the way). Which certainly reminds me of the old adage about attorneys - "what does the Plan Documnent say? That depends. What do you want it to say?"