SIMPLE IRA CONTRIBUTION
I am merging part of my business with another business and have a question regarding retirement contributions. My prior business has a Simple IRA Plan and I contribute the max to it every year. When I merge part of my business I will be eligible to participate in their 401k program. I plan on keeping active in part of my old business by myself. I need to know if I can contribute to the simple plan for my self and also the 401k plan of the business I am merging with this year.
What is the max I can contribute.
Permalink Submitted by Alan - IRA critic on Wed, 2017-11-08 02:55
Is the other company under common control with your company? This gets technical as to what the business entities are. If under common control you cannot continue to have a SIMPLE IRA for one portion and a 401k for another, however there is a temporary exception for mergers, acquisitions, dissolutions etc that allows both plan to operate through the end of the current calendar year and perhaps the following year. See Notice 98-4, Q B-3.