mivcevich
Jan 26 2005, 03:28 PM
A company is downsizing and would like to go from a 401K plan to a simple-IRA plan. They stopped contributing to the K plan in 2004 and submitted paperwork to terminate the plan in December of 2004. Can they immediately start a simple-IRA plan in 2005 and not violate the exclusive plan rule?
Gary Lesser
Jan 29 2005, 12:18 PM
Yes they can. And the SIMPLE-IRA would not be treated as a successor plan (under the 401(k) rules).