Switching 401k from SIMPLE IRA in Mid-year
Hello all,
Thanks in advance for your help.
I have client who set up a 401k in the beginning of 2019.
Due to the cost of it, they want to change to SIMPLE IRA as soon as they can.
Can they make the change now?
thank you!
Permalink Submitted by Alan - IRA critic on Mon, 2019-06-17 23:08
No, they must start the SIMPLE IRA plan on 1/1/2020 with the annual notification send out by 11/1/2019. Because contributions have been made to the 401k this year, a SIMPLE IRA cannot be started in 2019 barring certain merger or acquisitions of the company.