Cancel a Plan Termination?

[Guest dms9999]

Client restates Plan for EGTRRA in October and then calls me says business is so bad he wants to terminate Plan. Resolution to formally terminate Plan dated and effective 12/29/2008.

Safe harbor contribution made for 2008 plan year and 5500 filed (indicating resolution to terminate Plan made during the year on Schedule I) recently. We explain that distribution paperwork will be sent out to all participants this week and he now wants to keep the Plan................... Business is better I guess?

No contributions have been made in 2009. Could I establish a new 401(k) Plan today and since the distributions from the original Plan would no longer be eligible for rollover due to the successor Plan rules, directly transfer all the balances from Plan 001 to Plan 002?

How about merging the Plan into a new 401(k) Plan with the same provisions. Obviously Safe Harbor is out for 2009.

All balances transferred would be 100% vested. I am just looking for a way to keep a Plan going without having to wait 12 months after distributions actually occur.

Any thoughts? I know I could just have hime set up a Simple IRA for 2009.

Thanks

[Guest Sieve]

Un-terminate the Plan via Bd. resolution, & keep it going. No distributions, no merger, no SH for 2009. Or, establish new plan (SH, if desired) with off-calendar plan year, & merge assets.