simple IRAs and 401(K) Plans

[Guest mad]

Is it possible to maintain simple IRAs and a 401(K) Plan at the same time.

Thank you

[goldtpa]

A SIMPLE IRA may not be established if the employer mainatins another qualified plan. However a SIMPLE IRA can be etablished if the other qualified plan only covers union employees and the SIMPLE excludes union ee's.

[Guest dubya]

I don't think so. The write-ups I've seen for SIMPLE plans all indicate that if maintaining a SIMPLE, it has to be the only plan of the employer. I would take that to preclude maintaining another SIMPLE as well, regardless of whether it was an IRA or 401k variety.

[Appleby]

dubya,

goldtpa is right . See IRS Notice 98-4 Q&A B-3