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SIMPLE IRA and 401(k)


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Guest szaidman
Posted

An employer terminated their SIMPLE IRA in May, and they want to start a 401(k). Do they have to wait for January to start, or can they start now since the IRA is not open for new contributions anymore?

Posted

unfortunately they must wait until Jan. 2002 to start a new plan; no other types of plan can be effective in a year in which a simple IRA exists (contributions paid )

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