Successor Plan?

[wmyer]

I re-read Notice 98-1, but it doesn't address this situation directly:

A 50%/50% S-Corp had a traditional 401(k) plan (owners are unrelated). The plan terminated 2/27/2004 and the corporation dissolved. One of the 50% owners then established a new S-Corp in 2004 and began a new traditional 401(k) plan for 2004. For his new plan, can he use prior year testing with a 3% assumed NHCE ADP? It seems to me that he can.