Delaying implementation of 401K plan

[AGT9501]

Our company is transitioning from a SIMPLE to a 401K plan.  Through a series of events by Fidelity, we were not able to start the plan on January 1 but instead have a live plan starting April 1.  For a variety of reasons, we would like to keep the SIMPLE for the balance of 2020 and delay the start of the 401K until January 1, 2021.  Fidelity seems to indicate this is not doable.  Can a delay in starting a "live" plan be done reasonably?  

[Larry Starr]

44 minutes ago, AGT9501 said:

Our company is transitioning from a SIMPLE to a 401K plan.  Through a series of events by Fidelity, we were not able to start the plan on January 1 but instead have a live plan starting April 1.  For a variety of reasons, we would like to keep the SIMPLE for the balance of 2020 and delay the start of the 401K until January 1, 2021.  Fidelity seems to indicate this is not doable.  Can a delay in starting a "live" plan be done reasonably?  

That's what you get when you go for cheap with people who are less knowledgeable than most of the professionals occupying these halls.  You need to hire someone locally who knows what they are doing and can make happen what is actually best for the employer.  Maybe keeping the simple makes sense, maybe not. 

If this came to us, I guarantee we would figure out what is the RIGHT thing to do for the employer and then make that happen, whether it is keeping the 401(k) or the SIMPLE.  But we get paid for our expertise; you need to decide if paying for competence is in your budget.

Go find a good admin firm with technical expertise to be your advisor; you will never get the right answers on anything from Fidelity.

Strong statement to follow!?