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SIMPLE IRA / 401(k) Scenario


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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.

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