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Merger with SIMPLE and 401(k) plans


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Company A, with a 401(k) plan, is about to acquire Company B, with a SIMPLE. I know that a company is not permitted to have both type plans in the same year. Is there some special rule in an acquisition situation where they were not related for the part of the year when both plans existed?

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  • 4 years later...

What's interesting about this is that the transition period, unlike the transition period in 410(b)(6)(C) which is the end of the calendar year following the calendar year the transaction takes place, is a TWO year transition period. So if it takes place in 2017, and you otherwise satisfy the requirement, you can run the SIMPLE through the end of 2019.

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