SIMPLE as a successor plan

[Guest RAA]

We are getting conflicting advice regarding whether or not a SIMPLE IRA plan would be considered a successor plan to a 401(k) Plan.

Client wants to terminate the 401(k), distribute funds and then start a SIMPLE IRA. I don't see anything in the code that exempts a SIMPLE from being a successor plan. SEPs yes, but not SIMPLEs.

Any help? (Cites wuld be helpful, thanks)

[KJohnson]

This was discussed a year or so back. Look here:

http://www.benefitslink.com/boards/index.p...t=ST&f=20&t=534