is anyone aware of an exemption to the 100 participant rule for simple plans if the sponsor is dissolving or winding down?

All that can be said is that they can eventually maintain a SIMPLE IRA in the year after they get small enough. The 100 employee limit is based on the previous year census (and the $5,000 threshold if provided for).


Although not indicated in your facts, Code Section 408(p)(2)© provides a grace period for employers that grow too large due to an acquisition, disposition, or similar transaction by an eligible employer.