Safe Harbor -Merger Mid Year

Facts -

Company A has a Safe Harbor Match Plan - 1 year of service

Company B has a non Safe Harbor Plan  - 2 months service requirement

Company A wants to merge Company B's plan into their plan. Can a non safe harbor merge into a safe harbor plan did year?

The only thing I found  was is if the surviving plan is Safe Harbor and a maybe notice was provided, the merger can happen mid year. Company A has a Safe Harbor Match so do they have to wait until 1/1/ to merge the plans?

thanks

Let's assume both plans use the same plan year to simplify things a bit.

A non-safe harbor plan cannot be merged into a safe harbor plan in the middle of a plan year.  The first sentence of Treas. Reg. Section 1.401(k)-3(e) requires that safe harbor provisions be adopted before the plan year begins and that was not true for Company B's plan.

The work-around is to amend Company B's plan to freeze contributions, amend Company A's plan so that Company B's employees are eligible for it, and then merge together the plans after the plan year ends.