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Safe Harbor Ne Plan With Simple


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Guest LTurner
Posted

Our new client.... adopted a 401(k) PSP with safe harbor non-elective language. Effective 4-1-02 with year end of 3-31.

All went well, until at end of year, CPA notices that SIMPLE and 401K amounts are on the W-2 (which they didn't have a problem with) and when combined one individual was over the $ limit.

Brought to our attention in mid-Feb when an excess contribution distribution was requested.

Financial advisor said they could do this because they terminated the SIMPLE on 3-31-02 and didn't start the 401k until 4-1-02.

What steps do we take to correct this? As I'm quite certain you cannot have the 401k and the SIMPLE in the same calendar year (boy I wish/hope I'm wrong).

Guest LTurner
Posted

Blinky,

although I can appreciate your sense of humor - it didn't help

Guest LTurner
Posted

Blinky,

although I can appreciate your sense of humor - it didn't help

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