SIMPLE IRA conversion to 401k
Good day. Are there standard requirements by the plan sponsor regarding deadlines, notifications, etc., for a plan conversion from a SIMPLE IRA to a 401k that are requirements in 20224 for conversion in 20225? Best CStamos
Permalink Submitted by Alan - IRA critic on Thu, 2024-09-19 18:15
If the 401k is to become effective on 1/1, which is easier and less confusing than a mid year change as it avoids pro rated contribution limits, the notice of plan termination for the SIMPLE IRA must be sent to all employees prior to 11/2, and the SIMPLE IRA custodian and payroll provider must also be notified of the termination effective date.
Per Secure 2.0, a SIMPLE IRA can be terminated mid year if replaced with a safe harbor 401k with a 30 day Notice, but since it is now Sept, a year end change will be easier to implement.