Termination of a Safe Harbor Plan

[Guest mmc]

This is a plan using the safe harbor matching contribution and the employer is terminating the plan, or thought the plan was being terminated. The employer is being acquired in June. The safe harbor notice to participants for 2004 was not a "wait and see" notice.

Since the regs are proposed regs, the opinion is a plan termination prior to the end of the year is too aggressive and the termination date should be 12/31/2004. Has anyone successfully terminated a safe harbor plan midyear?