SIMPLE plan and 401(k) in same year

[Guest jetfaninmn]

I know I saw an answer to this but I can't find it on my search. If a company has a SIMPLE in place in 2005 and implements a Safe Harbor 401(k) Plan in 2005, the only downside is the employer loses the deductability of his match to the SIMPLE plan. Is this correct?

[Gary Lesser]

In such a case, all contributions to the SIMPLE IRA become excess contributions. See older posts on this subject.