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Hang on here, this one will take a minute to layout.

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Background Info

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Company A maintains a 401(k) plan with a Year End provision for Employer Contributions.

Employee Z just got called up to active duty, effective 9/1/2007, for a one year tour.

Company B will purchase assets of Company A effective 12/31/2007.

All employees will terminate with Company A and be rehired by Company B.

Assume that Company B will take the role of sponsor for Company A's plan.

Assume that the Plan will be amended to allow for Predecessor Service for all purposes.

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Specific Question

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What happens to the 2007 Employer Contribution?

Does Company B have any responsibility to Employee Z in light of assuming the role of Sponsor?

Whew. Thanks!

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