Funding Profit Sharing contribution for old plan

[Rai401k]

We have a plan Company A that just purchased Company B through an asset sale effective 7/1/2013, the decision during the purchase was that Company B's plan would be merged in to Company A's plan.

Company B's plan year is 6/1/2012-5/31/2013. Company A is calendar year.

Company B's plan was merged in to Company A's plan effective 7/1/2013.

Company B wants to fund a Profit Sharing Contribution to their plan for the calendar year ending 5/31/2013 prior to the assets being merged in to Company A's plan.

Is there anything wrong with this? Also does this affect the contribution limits for the year? I know we have to take in to consideration Company B deferrals for all employees from 1/1-5/31/2013 but what about the PS contribution. I do believe we have to take it in to consideration since they are funding a contribution to the old plan and it is prior to the merger.

[Bird]

So Company B's plan will have a short year 6/1-6/30.

First, I see no problem with B making a contribution for the 5/31/13 year end. It is accrued and becomes an asset (receivable) as of 5/31. The funding date makes no difference, other than doing it in a timely manner.

What is the basis for including all company B deferrals for the calendar year? You have a fiscal year ending 5/31 which will have its own testing/limits, then a short year for June with its own testing and limits, then the B participants will have comp and contributions from 7/1 - 12/31 including in the A testing and limits. The only calendar year concern for B participants is individual 402(g) limitations.