Spin off from MEP

Hello.

We have a prospective client that is looking to pull out of a MEP and start their own plan effective October 1, 2019.  Current MEP provisions include a safe harbor non-elective contribution.  New document to include a safe harbor non-elective.

1.  Does the client lose safe harbor status by pulling out of the MEP before the MEP plan year ends?  I think so.  What are your thoughts?  The new plan being established is also a safe harbor plan.  Does that make any difference?  Do the ER contributions made in the MEP and the contributions made to the new plan need to be tested together?  New plan has a new comp allocation formula.  Still waiting for prior MEP Participating Employer agreement to determine prior ER contributions and allocation conditions.

2. In the above example, what if the client is pulling out of the MEP (safe harbor provisions)  because it has been purchased by an other entity, Employer A.  And Employer A is setting up a new plan effective 10/1/19 , which is not safe harbor?  I believe that safe harbor provisions are preserved due to business transaction.  what are your thoughts?