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Safe Harbor 403(b) and Successor Plan

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403(b) funded with individual contracts. The intent is to establish a new 403(b) funded by a group investment arrangement, including employer contributions mid-year (7-1-07). The employer wants to go safe harbor for ACP (employer contributions in the 403(b)) mid-year.

Are the rules applicable to 403(b) safe harbors the same as 401(k) in that there must be at least 3 months left in the plan year for a new plan, UNLESS the new plan is a successor plan, in which case must be 12 months. Would this second 403(b) arrangement be considered a successor plan?

Is the solution to make the second 403(b) plan year 7-1 to 6-30 and then change the plan year in subsequent years if needed?

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