MarZDoates Posted November 1, 2006 Report Share Posted November 1, 2006 Client wants to terminate s/h 401(k) 12/31/06. He will need to make the s/h match for 2006, but it probably won't be deposited/allocated until 2007. Does this mean client can't have a SIMPLE in 2007 since employee receives allocation in that year? Thanks. QPA, QKA Link to comment Share on other sites More sharing options...
Bird Posted November 1, 2006 Report Share Posted November 1, 2006 They are 2006 allocations. Ed Snyder Link to comment Share on other sites More sharing options...
four01kman Posted November 1, 2006 Report Share Posted November 1, 2006 Is it necessary to wait until the 2006 contributions are made in 2007 before the new SIMPLE plan can be adopted? Jim Geld Link to comment Share on other sites More sharing options...
saabraa Posted November 1, 2006 Report Share Posted November 1, 2006 No need to wait. Notice 98-4, Q & A B-3 addresses the issue. The notice doesn't answer your question in so many words. It talks about 'maintaining a plan' being a situation in which allocations are made FOR (my emphasis) a plan year. Link to comment Share on other sites More sharing options...
MarZDoates Posted November 2, 2006 Author Report Share Posted November 2, 2006 Yes, I read that too. The "for the plan year" was tripping me up. QPA, QKA Link to comment Share on other sites More sharing options...
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