MGOAdmin Posted August 13, 2015 Report Share Posted August 13, 2015 Can you set up a profit sharing only plan (not 401k) in the same year that a SIMPLE plan exists? I know you can't have a 401k and SIMPLE in the same year but I was wondering if it made a difference if the second plan was employer only contributions? Thanks Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted August 13, 2015 Report Share Posted August 13, 2015 No. The issue is that the SIMPLE IRA has a exclusive plan rule that requires it be the only plan that receives contributions during any calendar year. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
Lou S. Posted August 13, 2015 Report Share Posted August 13, 2015 As ETA says if it is a SIMPLE-IRA the answer is no. If it is a SIMPLE-401(k), I'm not sure. Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted August 19, 2015 Report Share Posted August 19, 2015 If the mistake is made and the 401(k) is established, it's the contributions to the SIMPLE for that year that become invalid. The IRS website has something about corrections for when that happens. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now