Terminating a SIMPLE IRA Plan

[Guest Suanne]

What steps must be taken to terminate a SIMPLE IRA Plan? Does anyone have a sample notice to employees to notify of the SIMPLE IRA termination?

[Gary Lesser]

Notice to Employees

re: Termination of Simple-IRA Plan

Effective for the plan year ending on _______, the XYZ Simple IRA plan of ______________ will terminate. Thereafter, no further contributions will be made by the employer, nor accepted by the SIMPLE IRA trustee (custodian).

Also provide a copy of the notice to the trustee (or custodian) so that they will know not to acccept any further contributions. That's it!