SIMPLE IRA Shenanagins (sp?)

[austin3515]

Somoeone called and proposed this:

Have a SIMPLE IRA for two years. Because in a SIMPLE the match can be as low as 1% for two out of 5 years, they do 1% for two years, to take advantage of the "cheap" contributions (i.e. it's only a quarter of the SH Match, but ~75% of the contribution limit). After the two years, discontinue and do a SH 401k.

Is there a problem with this?

[ETA Consulting LLC]

No problem. You get two years to decide what you want to do.