safe harbor plan merging into non-safe harbor plan, different plan years

[maverick]

On 1/1/09 Employer X (3% nonelective safe harbor plan, plan year runs 7/1 to 6/30) is merging into Employer Y [non-safe harbor 401(k) plan, calendar year plan year]. Employer X's plan will into Y's plan on 1/1/09. If I am reading 1.401(k)(3)(e)(4) correctly, this merger would be similar to a termination and Employer X's plan would maintain its safe harbor status (as long as the safe harbor contribution is made through 12/31/08). Am I on the right track here?

Any other options out there, like merge the plans 6/30/09?

Recommendations or suggestions would be appreciated.

Thanks. Maverick