Pat Metallic
Dec 5 2002, 12:59 PM
An employer wants to terminate their 401(k) plan and put a SIMPLE IRA in place. If the employer doesn't make any contributions to the 401(k) in 2003, can he establish the SIMPLE IRA in 2003?
mbozek
Dec 5 2002, 01:57 PM
yes, provided that no one accrues a benefit in the 401(k) plan e.g., through forfeitures, in 2003. When would the final salary reduction contributions to the 401(k) plan be made?