MarZDoates
Nov 1 2006, 12:13 PM
Client wants to terminate s/h 401(k) 12/31/06. He will need to make the s/h match for 2006, but it probably won't be deposited/allocated until 2007. Does this mean client can't have a SIMPLE in 2007 since employee receives allocation in that year? Thanks.
Bird
Nov 1 2006, 12:28 PM
They are 2006 allocations.
four01kman
Nov 1 2006, 02:31 PM
Is it necessary to wait until the 2006 contributions are made in 2007 before the new SIMPLE plan can be adopted?
saabraa
Nov 1 2006, 03:35 PM
No need to wait. Notice 98-4, Q & A B-3 addresses the issue. The notice doesn't answer your question in so many words. It talks about 'maintaining a plan' being a situation in which allocations are made FOR (my emphasis) a plan year.
MarZDoates
Nov 2 2006, 10:54 AM
Yes, I read that too. The "for the plan year" was tripping me up.
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