Employer operating both a SIMPLE IRA and 403(b) concurrently?

An employer (church) has two employees. One employee participates in a 403(b)(9) non-electing church plan, the other employee is contributing to a SIMPLE IRA.

Is this okay?

I was under the impression an employer cannot have both of these in operation at the same time.

I believe it causes disqualification problems for the SIMPLE-IRA contributions in the years in which both Plans are maintained. The employer is not allowed to operate another Retirement Plan and I believe that includes 403(b) Plans.  Though neither SIMPLE-IRA or 403(b) is the area I focus on so I could be wrong. But my understanding is the same as yours.

I think Lou is correct unless there is a special exmption for 403(b)s which I amnot aware of.

Thanks for the confirmation!

No special exemption for 403(b) and, as has been mentioned earlier, the problem is with the SIMPLE IRA.  They could ask the party responsible for the SIMPLE IRA if their establishing documents have some sort of exemption from this rule for churches.  (I have never heard of one but I am not any sort of expert about SIMPLE IRA's.)