bzorc Posted December 12, 2013 Posted December 12, 2013 Many years ago a small employer established a SIMPLE IRA plan for its employees, and it has been operating nicely. However, over the past couple of years, the employer has been expanding and adding employees to the extent that they may exceed 100 employees in the next couple of years. What happens when the employer hits 100 employees? Must the SIMPLE plan cease operations? I have looked through my various answer books and can't seem to find an answer. Thanks for any replies!
masteff Posted December 12, 2013 Posted December 12, 2013 See page 9 here: http://www.irs.gov/pub/irs-pdf/p560.pdf Once you pass the grace period, you will have to change to a different type of plan; I presume w/out looking that the best option would be a 401(k). Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
bzorc Posted December 13, 2013 Author Posted December 13, 2013 Thanks, masteff, forgot all about Pub 560!
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