Guest sb42 Posted April 26, 2010 Posted April 26, 2010 Can a calendar year business which sponsors a SARSEP terminate the SARSEP mid year and establish a 401k plan for the duration of the year?
Jim Chad Posted April 27, 2010 Posted April 27, 2010 I do not know of a way to do this that would not disqualify the SARSEP.
Bird Posted April 27, 2010 Posted April 27, 2010 I think it is a problem for a SIMPLE, not a SARSEP. Ed Snyder
J Simmons Posted April 27, 2010 Posted April 27, 2010 I think Bird is correct. But I would add, many ERs would like to add a SARSEP but cannot. Is it really worth all the trustee and investment issues, recordkeeping, etc. to leave the SARSEP and go to a 401k? Make sure because once you stop that grandfathered SARSEP, there's no going back. 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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