Two entities - SECURE 2.0 automatic enrollment rules

Company A has a traditional 401(k) plan with a safe harbor provision, no automatic enrollment, plan has been around several years, well before SECURE 2.0. 

Company B - does not have a plan. 

Company B owners - purchase Company A as an equity purchase as of 7/1/2023. Company B intends to become a participating employer in Company A's plan as of 1/1/2025. It is a control group. Assume the transition period runs until 12/31/2024. 

The two companies are similar in size for number of employees, about 30 each. 

Is the resulting plan exempt from the automatic enrollment rule of SECURE 2.0? Or would it need to add an automatic enrollment provision that satisfies SECURE 2.0 as of 1/1/2025? what say all you lovely people? 

Of Internal Revenue Code § 414A and SECURE 2022 § 101, many interpretations are possible.

Miscellaneous Changes Under the SECURE 2.0 Act of 2022, Notice 2024-2, 2024–2 I.R.B. 316 (Jan. 8, 2024), at its part II.A, describes some partial interpretations; but none that addresses your question. https://www.irs.gov/pub/irs-irbs/irb24-02.pdf

While an employer might like C.B. Zeller’s reasoning, here’s the practical question:

How much confidence does your client need or want?

How much lack of confidence would your client tolerate?

This is not advice to anyone.