Simple Ira

[Guest Bill U.]

Please help? Heres the senario:

ABC company had a SIMPLE IRA for 2000 and 2001. But in the middle of 2001 the company changed it's Tax ID#, and company name. Does the company have to adopt new SIMPLE IRA? If so can the company adopt the plan for 2001 even though it's past the Oct 1 deadline?

[Gary Lesser]

If it is the same company, same employees, with just a new name (old company no longer exists), the "new" employer can amend the plan to state that the employer's name has changed. The sponsoring financial institutions should be informed of the change in employer's tax i/d number and name change. The "existing plan" should be okay. If this is a merger or aquisition, then different rules may apply.