Guest elang Posted October 13, 2011 Posted October 13, 2011 Client has a Simple 401(k) Plan and they have been making contributions into it this year. They would like to establish a DB plan this year. Is that possible? If so, what is the best mechanism? Thanks in advance
Effen Posted October 14, 2011 Posted October 14, 2011 Generally, no can do. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
John Feldt ERPA CPC QPA Posted October 14, 2011 Posted October 14, 2011 Adopting a qualified plan would invalidate the SIMPLE plan.
rcline46 Posted October 14, 2011 Posted October 14, 2011 Note the OP said this was a SIMPLE 401(k) Plan, which is a qualified plan. I hope they did not mean a SIMPLE IRA. However, the same rule applies - no benefits for the year under any other plan.
John Feldt ERPA CPC QPA Posted October 14, 2011 Posted October 14, 2011 Oh man, my bad. Yes, I was thinking SIMPLE IRA.
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