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deferrals made without plan in place


Guest gjertsen

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Guest gjertsen

If a business informs employees it will cease a SIMPLE IRA plan at the end of 2008, but continues to allow employees to make deferrals in 2009, with the intention to put them into a new 401(k) plan, only the 401(k) plan never comes to fruition, what's the easiest way to rectify the situation?

1. return the "deferrals" as income to the employees?

2. deposit the deferrals into the SIMPLA IRA (and wait another year to establish a 401(k))?

3. something different?

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Where are the 2009 deferrals? Were they put into the SIMPLE IRAs? Have the been deposited into investment accounts that reference a 401k plan? Does the ER yet hold the amounts deferred?

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

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