Purchased by company with a SIMPLE Plan

[Earl]

My client with a 401k is purchased by company with a SIMPLE Plan.

Can the 401k continue for the year (and next, does that 410b exception apply here) or do the employees have to start participating in the SIMPLE (when)?

Thank you

Earl

[Earl]

Kept searching here and found another thread:

IRC 408(p)(10) provides transitional relief in this situation. The transition period begins on the date of the business transaction and runs through the last day of the second calendar year following the calendar year in which the transition occurred.

In order to be eligible for the transitional relief there must be no significant changes in coverage under the SIMPLE plan and the exclusive plan rule must be satisfied except for the situation caused by the business transaction.

So I think I am good. Thanks