Retrospective deferrals?

[M Norton]

Individual works for two companies. Each company has a SIMPLE IRA plan, and the individual has participated in both plans, reaching his annual deferral limit by putting some into each plan. One company ended their SIMPLE Plan, and the individual will not be paid enough in the other company between now and the end of the year to reach his annual deferral limit, even if he defers 100%. Can he put more in the second company's plan based on prior earnings in the current year?

I think a participant cannot defer retrospectively in a qualified 401(k) plan but I'm not sure about a SIMPLE IRA plan. And I can't seem to locate a cite even for the 401(k). Can anybody help with this?

Thanks.

[Belgarath]

I'm not entirely sure I follow what you are proposing. Are you proposing that the participant write an additional check to the plan, that won't be deferred from current or future salary? So his salary for the rest of the year is $4,000, and he wants to put $5,000 into the plan, so he writes a check out of his checking account for $1,000? If so, answer is no.

As to "retroactive" deferrals, no, there is no such thing.

[Bill Presson]

You say "one company ended their SIMPLE plan."

That can't be done in the middle of the year.

https://www.irs.gov/retirement-plans/terminating-a-simple-ira-plan