Guest rgorman Posted November 3, 2005 Share Posted November 3, 2005 I have found in several research sites the folloiwng fromthe 1999 ASPA IRS Q&As 2. Q. When can you terminate a SIMPLE IRA? Rumor has it that once you are passed the notification date, the employer must maintain the arrangement for the next entire calendar year. A. It is either the notification date or the beginning of the next plan year. Though there is no official determination at this time, the conservative approach would be to use the notification date as the limit for termination. My question - it was decided after 11/1 when the notice was required to be sent, to terminate the SIMPLE. If we do an amendment and send the participants another notice saying the SIMPLE has been terminated prior to the end of the plan year, is there a problem? I could not find any recent quidance on this. Thanks Link to comment Share on other sites More sharing options...
Gary Lesser Posted November 9, 2005 Share Posted November 9, 2005 It would appear that any amendment must be consistant with the plan notifications for the year; thus, a termination would generally be effective no sooner than the next plan year. Link to comment Share on other sites More sharing options...
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