SIMPLE IRA and Cash Balance

[Sym401k]

Just looking to confirm if a company currently is making contributions to a SIMPLE IRA they are precluded from setting up a Cash Balance Plan for 2018?  We would need to terminate the SIMPLE by Nov 2nd and set up a new plan effective 2019?

[CuseFan]

Yes, you cannot contribute to a both SIMPLE and a qualified plan for the same tax year.

[Flyboyjohn]

Technically there would be nothing wrong with the CB plan but the SIMPLE IRA would be retroactively "disqualified" and have to be "undone" for 2018.

There may be scenarios where retroactively blowing up the SIMPLE IRA is worth the expense and aggravation.

[austin3515]

That is interesting...

[Mike Preston]

See Larry Starr's pdf on this issue posted by Dan. Search.