Vlad401k Posted March 2, 2017 Share Posted March 2, 2017 Can SIMPLE IRA be merged into a 401(k) mid-year. I know the SIMPLE IRA cannot be terminated mid-year, but can it be merged mid-year into a 401(k) plan. If not, would it be required to wait until the end of the year, then terminate the SIMPLE IRA and rollover the assets into the 401(k) plan. Thanks in advance. Link to comment Share on other sites More sharing options...
K2 Posted March 2, 2017 Share Posted March 2, 2017 The SIMPLE has to be the exclusive plan of the employer for the whole year, so I don't think you can do a merger into a 401k. Link to comment Share on other sites More sharing options...
Bird Posted March 3, 2017 Share Posted March 3, 2017 Because SIMPLE IRA assets are held in...IRAs, the concept of a merger is inapplicable. You could start a 401(k) and allow participants to roll over their SIMPLE balances, but it's their choice. If you do start a 401(k), it invalidates the SIMPLE, so the usual recommendation is not to start a 401(k) in the same year, but if you don't mind a lot of messiness, it can be done. That is, the 401(k) doesn't have a problem, but the SIMPLE does. Doghouse 1 Ed Snyder Link to comment Share on other sites More sharing options...
Vlad401k Posted March 6, 2017 Author Share Posted March 6, 2017 Thank you. That was very helpful. What about SEP? Can it be merged into a 401k plan or does it have to be terminated too? Thanks. Link to comment Share on other sites More sharing options...
rcline46 Posted March 6, 2017 Share Posted March 6, 2017 Remember a SEPP is really a SEP-IRA, and you have answered your own question. Link to comment Share on other sites More sharing options...
Vlad401k Posted March 6, 2017 Author Share Posted March 6, 2017 That's what I figured. Just wanted confirmation. Thanks. Link to comment Share on other sites More sharing options...
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