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How to stop a SIMPLE IRA plan mid year

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Client has had a matching SIMPLE IRA plan for many years now.

They have hit a really big hole for their business in the last three months.

This has resulted in layoffs, pay cuts, benefit reductions, etc. and even with these they may not make it.

They are telling me that they cannot in any way continue to make matching contributions to the SIMPLE.

If they stop the employer match they are wondering if the can let employee keep deferring until they can turn things around or they are out of business.

What can I say to them under these circumstances ?

Thank you

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Despite the IRS "no mid-year termination" stance you can't get blood out of the turnip so I would tell them to consult qualified counsel (assuming they have enough blood to pay counsel)as to what steps to take to blow up the SIMPLE "retroactively".

Under no circumstances should they permit employees to continue to defer for the rest of the year.

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