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Posted

Company A sponsors a Safe Harbor ( 3%) auto enrollment plan.  They recently purchased another company via a stock purchase. Purchased company is also a Safe Harbor (3%) auto enrollment plan. They intend to merger (not terminate) the acquired company's plan  into Company A's plan.

Trying to figure out if merger can occur mid year, or if  it has to wait until 1/1/2020.

Thanks you.

Posted

52626, I think that if (and I'm not completely clear on your facts) the safe harbor provisions are identical (i.e., 3% nonelective), the merger could be analyzed as in effect a plan amendment that is not a prohibited amendment under Notice 2016-16. But that is really "hypothetically" speaking, since I obviously have not reviewed your facts/documents.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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