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A controlled group is made up of two entities and one of the entities would like to revoke Safe Harbor mid year. All the HCEs are in the entity that is revoking Safe Harbor. How would the 2020 Coverage Test be performed for the 401(m) portion? Are all the NHCEs considered as benefitting due to the Safe Harbor for the partial year? Any feedback is appreciated!

A section 414 employer group includes two corporations at different locations with difference workforces. Corporation A includes the business owner and one other highly-compensated employee, and has a few non-highly-compensated employees. Corporation B has a larger workforce, and has only non-highly-compensated employees. A has a 401(k) plan that provides a matching contribution of 100% on elective deferrals of the first 3% of compensation and 50% on elective deferrals of the next 2% of compensation. A intends this as a safe-harbor plan. B has no retirement plan. IRC section 410(b)(6)© relief concerning the owner's acquisition of B expires with 2016. The owner is considering creating a retirement plan for B's employees that would "mirror" A's matching formula, allow entry on the same age and service conditions as for A's employees, and provide 100% vesting on the matching contribution. But which other plan provisions must be aligned to meet non-discrimination rules? And which plan provisions may differ without tax-disqualifying either plan? Both plans will exclude employer securities and provide participant-directed investment. Both will limit investment alternatives to shares of SEC-registered "mutual" funds. Both will provide daily valuation and daily direction. But does it matter that A's and B's designated investment alternatives differ? If so, what kinds of differences are permitted or precluded? Am I right in presuming that if A's plan allows a hardship distribution, B's plan must? If A's plan allows a participant loan, must B's plan allow it equally?