Client currently maintains a 401(k) SH plan on a calendar year basis. They would like to know if they can convert the 401(k) SH plan into a Simple IRA plan this week? Is that possible? If so, what would happen with the 401(k) SH plan and the contributions already contributed for 2006?

my limited knowledge applies to the safe harbor - the SHNEC can be stopped follwoing the guidelines for stopping the SHMAc - that is, 30 days notice is given and then the plan would be tested using current year. now as to whether you can convert to a SIMPLE I have no clue.