Hello, sorry for the multiple inquires today but it is tax season. A business owner with no employees has a SIMPLE plan. They made one employee contribution for 2024. They want to switch to a Solo 401k for 2024. We know they can’t have both plans in the same year.

1. Can the SIMPLE employee contribution be backed out as an excess removal so the business owner can run a Solo 401k?

2. In general, can a business owner or employee make a SIMPLE employee contribution and remove it as an excess if the contribution wasn’t a true ineligible contribution? They just changed their mind.

3. Would the rules be different for a business owner with no employees vs. one with employees?

Any feedback would be greatly appreciated. Thank you.