Mid year term - still safe harbor?

[Lou S.]

I feel I should know this but don't.

Company A sold all of its assets to Company B.

Company B hired all of Company A employees.

Company A has no more payroll and is terminating its safe harbor 401(k) plan prior to year end.

Does Company A still get safe harbor relief for the year or is it subject to testing?

[Tom Poje]

1.401(k)-3(e)(4) provides the rules for a final year less than 12 months.

[Lou S.]

Thanks Tom. That's exactly what I was looking for and like I said, I knew I SHOULD have know it.