SIMPLE IRA Plan Termination

What options does the sponsor of SIMPLE plan have if they can”t afford to make the require employer contribution?

It’s my understanding unlike a SH 401(k) a SIMPLE contribution can’t be reduced suspend mid-plan year. In addition, a simple can’t be terminate mid year

My suspicion is this situation will come up frequently due to the havoc COVID-19 is having on businesses; particularly small businesses.

Thank you



EPCRS states that a late employer underpayment to a plan should be made ASAP with an earnings adjustment using one of several possible methods. If the employer goes bankrupt before doing so, I assume that the participants would be creditors in bankruptcy.

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