SIMPLE IRA into DB Plan - 2024

Hi

Currently have a SIMPLE IRA. Wants to add a DB plan for 2024.

I thought cannot do it, what am I missing?

https://www.irs.gov/retirement-plans/simple-ira-plan-fix-it-guide-your-business-sponsors-another-qualified-plan

I believe you are correct unless you want to try to go through VCP for the SIMPLE IRA since it's the SIMPLE-IRA that has problems if you also maintain a qualified retirement plan in the same year. There might be some threads here on benefits link if you do a search, I think this has come up a few times in threads.

With Secure 2.0, the SIMPLE can end mid-year if replaced with a 401k SH Plan. If they added a DB after the change, would that still be a VCP issue? Seems like it was not addressed and would be a problem if the DB was added in 2024