Sole Prop Terminating SH 401(k) Mid Year

[TBob]

A sole prop has a safe harbor (3% non-elec) 401(k) Plan. He has a couple of employees that have been deferring and have received the appropriate SH contributions for the year so far (funded with each payroll). The plan is being terminated effective at the end of November. The plan year is the calendar year.

The question is... Will the owner have compensation for this plan year? Will he need to wait until the end of the calendar year when the accountant can prepare the Schedule C in order to determine if he had a profit for the year. Is that number then prorated for the portion of the year in which the plan was in operation in order to determine his SHNEC contribution amount? OR will he have no compensation since it is not determined until after the plan is terminated?