amcorson Posted July 8, 2014 Report Share Posted July 8, 2014 Company funds a SIMPLE IRA for 2014. Wants to move to a 401(k) plan. Company fiscal year ends 9/30/14. If they stop SIMPLE @ 12/31/14, can they adopt a 401(k) on 1/1/15 with a short plan year of 1/1/15 - 9/30/15? I have seen language that says a company cannot sponsor another plan in the same "plan" year as the SIMPLE and language that says a company cannot sponsor another plan in the same "fiscal" year. Which is correct? This is assuming they do not want to "void" the SIMPLE for 2014. Thank you for any clarification. Link to comment Share on other sites More sharing options...
masteff Posted July 8, 2014 Report Share Posted July 8, 2014 408(p)(6)(C ) says 'year' means calendar year The "only plan" rule is in 408(p)(2)(D) Also, see this FAQ (such as the 3rd from last question): http://www.irs.gov/Retirement-Plans/SIMPLE-IRA-Plan-FAQs-Establishing-a-SIMPLE-IRA-Plan Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
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