Jump to content

Simple 401(k)


PMC
 Share

Recommended Posts

Sponsor of a Simple 401(k) wants to amend to be

a "traditional" 401(k). They are not using the

Model Amendment (Rev. Proc. 97-9) but have an Adoption Agreement. Can they amend to a traditional 401(k) this year (protecting accruals), or do they have to wait until 1-1-02?

And since there's 100% vesting under a Simple (k),

do all existing participants have to remain 100% vested going forward, not only in existing Simple contributions, but in the new traditional (k) employer contributions too? There are discussions under the 401(k) section, that indicate the vesting schedule must follow the participant.

Link to comment
Share on other sites

I don't think anyone knows for sure if you can switch midyear or not if you are not using the model documnet. ceratinly you can't if you were.

good grief, you only have 3 1/2 months left, I'm not sure how much of a difference it can make this late in the year.

I would think the vesting only accompanies the SIMPLE match or nonelectives that have been made. in other words the vesting follows the source, just like a QNEC - but the person is still subject to vesting in other 'traditional' contributions.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...