A company is going to spinoff from a PEO and start their own plan. Would this be considered eligible to do safe harbor for 2008 since it is a startup or is it looked at as a continuing plan and would have had to have the notice out by 12-2007?

We have always presumed that it was the plan of the Client Organization and therefore the 'spinoff' is not a new plan. In the gray world of PEO plans we treat the Client Organization as having theur own plan, but that they are using the PEO's document via a joinder agreement as aconvenience.

In that light the restatement that uses a new document can't add the safe harbor for 2008 at this time.

Good luck.