SIMPLE IRA replacing a 401(k)

[Guest Pat Metallic]

An employer wants to terminate their 401(k) plan and put a SIMPLE IRA in place. If the employer doesn't make any contributions to the 401(k) in 2003, can he establish the SIMPLE IRA in 2003?

[mbozek]

yes, provided that no one accrues a benefit in the 401(k) plan e.g., through forfeitures, in 2003. When would the final salary reduction contributions to the 401(k) plan be made?