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Frozen 401(k) -- SIMPLE-IRA


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Its ok as long as the employer does not make any contributions to the 401(k) plan or allocate any forfeitures in 2003. Q- how is the er going to make salary reduction contributions to the 401(k) plan after year end. You should check this out.

mjb

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I've never really actually seen a frozen 401(k), but would there be any further deferrals? The intent is totally freeze all contributions; if participants are eligible to defer, then they couldn't do a SIMPLE-IRA because they would be benefitting under a qualified plan.

Am I missing something? Again I never have seen a frozen 401(k) and don't really see how it is a good option.

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