rblum50 Posted May 29, 2012 Report Share Posted May 29, 2012 I was just referred into a client that has had a SIMPLE IRA plan for years. They told the broker who "helped them" establish a new Safe Harbor 401(k) Plan effective 1/1/12 that there weren't any plan contributions to the SIMPLE during 2012. It now appears that one employee deferred about $500 and had an accompaying employer match. I know that the SIMPLE needs to be the exclusive plan, but since the new 401(k) has already been established, that is now a moot point. Question: Can the employee deferrals with income be returned to the employee and the employer matching contribution with income be returned to the employer? If the ee/er contributions can be returned, will there be any problem operating the 401(k) Plan normally for the 2012 Plan Year? Thanks for the help, Rick Link to comment Share on other sites More sharing options...
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