Amending/Restating to a Simple 401(k)

[Guest MRK]

I have a client who currently has a 401(k) Plan. The plan has deferrals and match (subject to 6 yr graded) and 12/31 plan year end. They are interested in a Simple 401(k) plan design. Does anyone know if a 401(k) plan be amended or restated to a Simple 401(k) plan?

[Guest SueM382]

yes they can go to a simple 401(k) but there are not too many reasons why they would!!

[Guest MRK]

yes they can go to a simple 401(k) but there are not too many reasons why they would!!

thanks sue, i forgot to ask... the existing 401(k) match doesn't have to become 100% vested does it? The vesting schedule can continue to apply towards that money type... correct?

As to why they're thinking about changing - I think it's just a cost issue. Admin cost for the simple are much less and no one is coming close to the lower contribution limits of the simple.

Thanks for your help.