delmar16

Thank you. Where can I find the source of information about this?

I understand that SIMPLE plans are subject to the controlled group rules (i.e. all members of the controlled group are treated as a single employer for qualified plan requirements). While as a parent company has SIMPLE 401K plan, can a subsidiary company have SIMPLE IRA in the same year? Contribution percentage will stay the same. The most of the employees will be transferred to a subsidiary company, and parent company will be as a holding company.