Converting a SIMPLE 401(k) to a New Comparability Safe Harbor 401(k).

[MR]

I have a client that has a SIMPLE 401(k) plan. I want to convert it to a safe harbor new comparability plan for 2001. They stopped the SIMPLE deferrals 12-31-2000 and I want to start 401(k) deferrals 2-1-01 (they posted the safe harbor notice 1-1-01). My first question is - can I simply restate the plan, effective 2-1-01? The current document is a prototype and I will restate to an individually designed document.

Second question - could I instead terminate the SIMPLE and start a new plan? I would think the "no 401(k) within 12 months of terminating a 401(k) plan" rule would apply.

Any thoughts?