adding particpating employer agreement within a safe harbor plan

[cpc0506]

Client contacts us today and says "I bought two more companies at the beginning of the year." He also told the employees they would be eligible to join the client's plan on next available entry date.

The plan is a safe harbor plan. The new companies are wholly-owned by client, so a controlled group exists. Can we add partcipating employer agreements to current safe harbor plan? Can we make them effective as of the date of purchase?

[Kevin C]

http://benefitslink.com/boards/index.php?/topic/55427-expand-sh-401k-to-related-entities-during-year/?hl=mid-year

If they let the new companies' employees defer before the document said they are eligible, you will need to look at EPCRS (Rev. Proc. 2013-12). That should be correctable under SCP by amending the document to reflect when they were allowed to enter.