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New SIMPLE PLan for 2012


rfahey

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I have a dentist with a profit sharing plan who will be terminating the plan in the next year.

He will not be making a contribution for 2012.

I had him execute a SIMPLE plan and distribute the required notices by October 1, 2012. He will be making a 2% non elective contribution for him and two emplolyees for 2012. He is self empllyed so will me making a salary deferral contribution for himself for 20112 in 2013 before he files his taxes.

Does this all sound correct to do ?

THank you!

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  • 3 months later...

Shouldn't be a problem IF no allocation under the PS plan based upon 2012 service/comp. Quick excerpt from the 5404 form below. Also note that forfeitures do NOT count unless they replace otherwise required contributions.

"You do not maintain during any part of the calendar year another qualified plan with respect to which contributions are made, or benefits are accrued, for service in the calendar year...."

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