simple ira

[Guest lip]

if existing simple ira;can sponsor establish in 2008 a db or a p/s?

We know you cant establish simple ira if you have anither plan;what about vice versa?

[Appleby]

Hi lip,

The rule is a little different from how you word it...you cannot maintain a SIMPLE while you maintain another retirement plan...except where exceptions apply ....So, if the SIMPLE IRA is being maintained for the year, the employer cannot maintain another retirement plan. If both plans are maintained, the SIMPLE IRA contributions for the year are disqualified. If no contributions are made to the SIMPLE for the year, then the employer can maintain the other plan for the year.

[Guest lip]

Hi lip,

The rule is a little different from how you word it...you cannot maintain a SIMPLE while you maintain another retirement plan...except where exceptions apply ....So, if the SIMPLE IRA is being maintained for the year, the employer cannot maintain another retirement plan. If both plans are maintained, the SIMPLE IRA contributions for the year are disqualified. If no contributions are made to the SIMPLE for the year, then the employer can maintain the other plan for the year.

thanks much.

can contributions be returned before 12-31 if any where made?