Amend SIMPLE (k) to traditional (k)

[MSN]

I know that a SIMPLE(k) can be amended to revoke the SIMPLE election, but I'm having trouble finding any kind of citation to this effect. If anyone can point me in the right direction, I'd appreciate it.

Thanks!

[Gary Lesser]

The model amendment contained a revocation clause; effective as of the first day of the calendar year following the date the revocation was adopted. [see Rev. Proc 97-9, containing model amendment] What are the plan's provisions regarding amenedment and termination?

The "effective date" provision is also consistant with the termination of a SIMPLE-IRA plan under the SEP-LRMs. Hope this helps.

[Guest PDDeBoy]

The model amendment contained a revocation clause; effective as of the first day of the calendar year following the date the revocation was adopted. [see Rev. Proc 97-9, containing model amendment] What are the plan's provisions regarding amenedment and termination?

The "effective date" provision is also consistant with the termination of a SIMPLE-IRA plan under the SEP-LRMs. Hope this helps.

If an existing SIMPLE plan has been in effect for several years, is the only time they can "change" it to a 401k on January 1st, which is the beginning of the plan year, meaning they would have missed the notification period and the new effective date options? Are there any other good ways to accomplish this?

[Kimberly S]

I don't know about the issue of changing from a SIMPLE to a regular 401(k). But an employer may not make contributions to a 401(k) in any year in which they have made contributions to a SIMPLE.