Safe Harbor Multiple Employer Plan

[rcline46]

I did not see a thread on point here. We have a Multiple Employer Safe Harbor 401(k) plan. The primary sponsor is being acquired by a larger firm with a non SH 401(k) plan.

The question becomes - can the SH plan survive after the transition period?

If we can manage to have the new and old each be 410(b) groups, I think so but would like confirmation.

If we cannot keep them as 410(b) groups, what happens? Consider that this might not be known until after the year end, meaning we apparently are testing a SH and a NON SH plan together.

Note that the documents do NOT automatically include affiliated employers.

[QDROphile]

You did not ask, but if you have a multiple employer plan, you should go to the Securities Law forum and look for an April 2005 thread about registration requirements for multiple employer plans, or to be more specific, the lack of an exemption from registration. The registration requirements may make maintenance of a multiple employer plan too much trouble.