Sell of Division

[Guest TAR]

Hi, I have a plan and the owner of the main corp that maintains the 401(k) also is the owner of 7 different car dealerships. Each of the 7 divisions participate in the 401(k) as one plan (approx 450 EE's). However as of 10/31/03 one of the divisions will be sold to one of the participants of the plan (approx 30 EE's). As the new owner he would like to set up a 401(k) with the exact same features and include all prior yrs of service with original employer. I am not sure in this case what I need to file and with whom. We want to notify employees of the sale of that store and the transfer of plan assets (for that division) to new plan. I am just not sure of all the requirements to get this completed correctly. Any help would be appreciated.

Thanks