Co A Contributes to Co Bs SIMPLE-IRA

[goldtpa]

Co A sets up 401k in 2008. In 2009 Co A buys assets of Co B and hires some of A’s employees. President of Co B owns 10% of Co A. Co B has no NHCEs.

For the employees that used to work for Co B, Co A continues to remit ee deferrals and matching to Co B’s SIMPLE-IRA. Co B is still the sponsor of the SIMPLE, even though Co A made the contributions and took the deductions.

I am thinking VCP. However I am correct in that both A & B would have to go to VCP?

Co A would have to go to VCP since they had both a 401k and a SIMPLE. Co B would also have to go to VCP as their plan received contributions on behalf of Co As employees.

[Gary Lesser]

Both entities should apply for VCP.

[goldtpa]

thanks. That's what I thought.