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mlp0816

SIMPLE IRA Termination

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I have a client that is selling his medical practice (5/1/2020).  The buyers do not want to maintain the existing Company SIMPLE IRA Plan.

Can it be terminated since he did not give notice to the employees as of 11/1/2019?  Does the fact that he is selling his practice weigh in? 

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42 minutes ago, mlp0816 said:

I have a client that is selling his medical practice (5/1/2020).  The buyers do not want to maintain the existing Company SIMPLE IRA Plan.

Can it be terminated since he did not give notice to the employees as of 11/1/2019?  Does the fact that he is selling his practice weigh in? 

 

The question is confusing and as too often the case, is missing substantial information to give the proper answer. 

What is the current form of the business and what is he selling (if corp, is he selling stock? or is it an asset sale which is most probable).  If he is selling his practice via an asset sale, he no longer has employees at the sale date and therefore there should no longer be any issues about contributions. The new employer doesn't have the plan because they have not adopted it (assuming an asset sale).  Please confirm the nature of the business and the sale and you can get what you need, but garbage in/garbage out! 🙂 

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Yes, whenever a client says they are selling their business, the first two questions are (1) when do you expect the transaction to occur? and (2) is it a stock/entity sale, or an asset sale?   We can't provide any useful advice about retirement plan options without knowing this.

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Useless advice is more entertaining. 

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17 hours ago, Mike Preston said:

Useless advice is more entertaining. 

And more likely to get SOMEONE in trouble, which is always entertaining!!!!

Larry.

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Larry - There's no need to be Rude.  Not being an expert in this field results in asking questions for assistance.  How about just state what questions I would need to ask for further guidance on the matter. 

shERPA - thank you. 

 

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22 minutes ago, mlp0816 said:

Larry - There's no need to be Rude. 

 

He wasn't rude in the slightest. This is the internet. It is perfectly reasonable to expect a post from someone within the industry to have done at least a little research before posting. I'm a little tired of every time someone points out a glaring insufficiency they are accused of rudeness. Are you paying for his time? When you start doing that you can set whatever standards you want. Strong letter to follow as to why if the above isn't clear enough. 

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mlp0816, you will soon learn that pointing out the rudeness of "well known gurus" and "basic smart asses" is frowned upon around here.

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4 hours ago, mlp0816 said:

Larry - There's no need to be Rude.  Not being an expert in this field results in asking questions for assistance.  How about just state what questions I would need to ask for further guidance on the matter. 

shERPA - thank you. 

 

Interesting! I don't even know what you are considering rude. There are MANY people who just read these posts, and the answers posted are intended to be educational for all the folks listening in. If folks can learn a better approach to asking questions by reading these comments, we have accomplished much. If you are offended, you might want to keep the above in mind. 

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No worries Larry - I think it was the "garbage in garbage out" comment. I admit I certainly don't have your experience.  Sometimes it not what we say but how we say it.

Thanks and have a good weekend.

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11 hours ago, mlp0816 said:

No worries Larry - I think it was the "garbage in garbage out" comment. I admit I certainly don't have your experience.  Sometimes it not what we say but how we say it.

Thanks and have a good weekend.

Again, interesting!  I hope you noticed the smiley face following that comment.  And it is a very convenient shorthand method of pointing out that you cannot get good answers unless you provide good (and complete) information.  If not, GIGO! And now, multiple smiley faces.....😀😁😎😍 And of course, a panda (for those in the know):🐼

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