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Distributions/rollovers from SIMPLE 401(k) Plans

Guest KFI

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I'm not finding much guidance on this -- can monies from a SIMPLE 401(k) Plan be rolled into a "regular" 401(k) Plan? Here are two scenarios:

1. An employer has a SIMPLE 401(k) plan. As of 12/31, the Employer wishes to "convert" or "merge" the SIMPLE 401(k) plan to a brand new "regular" 401(k) plan. Can the SIMPLE monies go into the "regular" plan? I'm not finding anything that would prohibit this, but nothing that specifically supports it either.

2. An employee participating in a SIMPLE 401(k) plan terminates employment with the employer. Can he/she roll their account into a "regular" 401(k) plan with their new employer?


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  • 3 weeks later...

A Simple 401(k) plan is a 401(k) plan and the money can be transferred between trustees. If the new plan (or new employer's plan) allows for rollovers, then amounts (other than after tax dollars) can be rolled over into the new plan. Why does't the employer just use the non-SIMPLE features of the existing 401(k) plan for next year? Something is wrong here...

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