Simple IRA and Money Purchase Plan
I have a client that is going to discontinue his Money Purchase Plan. He wants to open a Simple IRA prior to Oct. 1st. Can the Simple be opened prior to the MPP being terminated? Or does the MPP have to be terminated first?
Permalink Submitted by Alan - IRA critic on Tue, 2014-09-09 23:01
SInce MPP contributions are being made for any part of the year, contributions to a SIMPLE IRA must start the following January. The SIMPLE IRA could be established sooner, but could not receive contributions.