Hello all,
Thank you in advance for reading my post and sharing any thoughts on what seems like a strange situation we find ourselves in. We have a small S-Corp with a 50+ year history and have offered a SIMPLE plan to our employees for over 10 years. This was at Fidelity for most of that time, but mid-2023 they cancelled our plan and would not accept any additional deposits. We asked what we did wrong or why we would be cancelled and got no answer.
During the 5 months it took to setup an account at Schwab, the business withheld the funds for employees that were earmarked for Simple contributions. This was done with each employee's written approval.
In Feb-2024 we finally got Schwab all setup and employees established accounts. We were able to send the 5 months of back contributions, and current payroll cycle, and now we have received another plan-cancellation letter. In reaching to Schwab, again no reason provided.
We are at a loss about what the issue is, but we appear to be on some type of "black-list" that plan administrators don't want as customers, but we have no idea how to move forward.
Does anyone have any suggestions on what could be causing this?
Is there any other way our business can help our employees fund their retirement. We went the Simple route since it was low cost to setup and manage. Are there other types of plans we should explore, or are their retirement consultant agencies that might be retained to get answers from Fidelity / Schwab on what this issue is.
Thank you again for your thoughts,
Rick
