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Simple Takeover


Guest mb4

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I realize this may be a redundant question but is it possible for a Simple plan to be taken over by a new broker/rep after the Oct. 1st deadline. What I'm asking is this considered a new plan and subject to the deadline or is it just a new account that could be opened any time because it falls under the same plan document.

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This is not a new plan…just a new account under an existing plan. The account can be opened anytime, providing it is opened timely to receive contributions ( by the deadline for depositing such contributions).

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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  • 2 weeks later...

And a new sponsors documents may also be used as an amendment of the existing plan, PROVIDED, the new plan's provisions (mainly options) are not inconsistant with the plan notifications that were distributed to the employees (presumably) last year. As long as the sponsor accepts the employer's plan document, it may establish SIMPLE IRA accounts for employees. Technically (DFI aside), there is no requirement that the SIMPLE-IRAs be established with the same sposor that provides the document. However, such an approach may result in important notices and amendments not reaching the adopting employer.

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