MR Posted April 23, 2002 Report Share Posted April 23, 2002 lets say an employer sponsors a SIMPLE IRA plan and turns out to have over 100 employees. does this somehow allow them to convert to traditional 401(k) mid-year to "correct" the problem? Link to comment Share on other sites More sharing options...
Gary Lesser Posted April 24, 2002 Report Share Posted April 24, 2002 This is possible; with all SIMPLE IRA contributions becomming excesses. Didn't they know on 1/1 they had over 100 eligible employees last year??!!?? Link to comment Share on other sites More sharing options...
MR Posted April 24, 2002 Author Report Share Posted April 24, 2002 they're not my client yet - i'll have to ask that when i meet them. what would happen to the simple contributions already made in 2002? Link to comment Share on other sites More sharing options...
R. Butler Posted April 24, 2002 Report Share Posted April 24, 2002 Did they always have over 100 or did the employee account become 100 in a subsequent to establishing the Plan? They have a 2 year grace period if they established plan and then subsequently became ineligible. Link to comment Share on other sites More sharing options...
Appleby Posted April 28, 2002 Report Share Posted April 28, 2002 True, but as Gary stated earlier, if any other plan is established in 2002, all the SIMPLE contributions made in 2002 will become excesses. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
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