Terminating Simple Plan and Contribution Timing

[mjf624]

Simple terminated in 15 and converted to a 401k in 16. Two questions, can the 2015 employer contribution for simple be funded in 2016? If it is a partnership (k1's for partners - not w2) can the employee deferrals be deposited for the partners in 16 for 2015?

[Lou S.]

Subject to the timing of deposits rules for Simple plans I see no problem making a contribution for 2015 in 2016.

[austin3515]

https://www.irs.gov/pub/irs-tege/forum15_sep_simple_avoiding_pitfalls.pdf

Mfishbein, take a look at this from the IRS website. See page 6 where it says (regarding self employed deferrals):

For a self-employed person, the Schedule C filer, salary reduction contributions must be deposited within 30 days of the end of the plan year, or January 30th.

[mjf624]

Thanks very much, Austin!