An employer wishes to terminate their old Keogh PS plan and adopt a SEP plan this year. I understand that the IRS Model SEP Form 5305 prohibits an employer from establishing a SEP if they "maintain another qualified plan".

Question: If the Keogh is terminated in 2009 and SEP started later in 2009 after the termination, does this fail to meet the requirements of Form 5305? Stated another way, does the employer "maintain another plan" if it's terminated mid year? Could we start the SEP in same calendar year using the IRS Model form?

Thanks for all help on this!!