betheeg Posted August 11, 2005 Share Posted August 11, 2005 Client has Simple Ira in place now. They have made contributions during 2005. The company's fiscal year ends 8/31. Can they teminate the Simple now and start a Safe Harbor 401(k) for October 1st? Or do they have to wait until 1/1/06? Thanks for any help... Link to comment Share on other sites More sharing options...
Archimage Posted August 11, 2005 Share Posted August 11, 2005 I believe a plan year cannot be terminated mid-year for a SIMPLE IRA. I think you are stuck and will have to start the new 401(k) on 1-1-06. Link to comment Share on other sites More sharing options...
Gary Lesser Posted September 8, 2005 Share Posted September 8, 2005 If the qualified plan is adopted for the same calendar year (benefits accrue etc) the SIMPLE-IRA would be invalidated for the year. See other posts if this road taken. Link to comment Share on other sites More sharing options...
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