Thornton
Jun 28 2000, 05:23 PM
I've read that a 503©(3) nonprofit cannot establish a SIMPLE IRA but can a SIMPLE 401(k). Does anyone have a reason for this? Thanks.
Gary Lesser
Aug 29 2000, 10:17 AM
If you meant to cite "501©(3)" the business may establish a SIMPLE in IRA form, or in the form of a 401(k) SIMPLE. [Notice 98-4, B-4; Notice 97-6, B-4. Gov't employers, however, may not establish a qualified SIMPLE plan under a 401(k) arrangement.