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Can a 401k hibernate for a year?


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Guest Commuter Rex
Posted

The (small company) 401k plan ceased contributions, distributions, etc. on 12/31/2003 so the company could start with Simple IRA in 2004. I was preparing to term the 401k, but in talking with plan sponsor we realized he really just wanted/needed a safe harbor provision. If the Simple IRA is confined to 2004 only, is there any reason why the 401k can't be brought back into operation for 2005? Any amendments needed? There are no plan loans or other complications, and there have been no distribution requests. We could come back and get the Simple IRA money after the 2 year wait.

How do we look? :rolleyes:

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