Retirement Plan Consultants
Hochheiser Deutsch & Co, Inc.
Loren D. Stark Company
Compass Retirement Consulting Group, Inc.
Trucker Huss, A Professional Corporation
Bates & Company
Carpenter Morse Group
ERISA Services, Inc.
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|Merger Due to Stock Sale; Handling the SIMPLE and 401(k) Plans|
BenefitsLink Message Boards
Nov. 30, 2021
"Client with 401(k) and another client with SIMPLE Plan are merging in a stock sale. There will be a third, brand new company (effective 01/01/2022) with a new EIN for all employees. The new company wishes to continue the 401(k) plan with the new company as the Plan Sponsor and terminate the SIMPLE plan (which would happen regardless because there will be well over 100 employees after the merger). I believe I understand the transition year, which in this instance will be the 2022 plan year. However, if all employees are now on the same payroll in 2022 (under the 'new' company and EIN), is it still possible to have the SIMPLE participants making SIMPLE contributions and the 401(k) participants contributing to the 401(k) plan for the 2022 transition year?"
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