We have a 401k plan that submitted a request to terminate their plan as of 12/31/2022. The company received the following confirmation from the TPA:

“Before we are able to terminate the 401k plan we need to wait until the last check date was collected and traded into the participants accounts. If we were to terminate the plan before the last check date the funds would not be deposited. Your plan was also apart of the Safe Harbor provision. This means we needed to have the last check date be 12/31/2022. After the last check date it takes up to 10 business days to terminate the plan. The funds were collected on 12/30/2022 and traded into the accounts 01/05/2023 and we terminated the plan effectively 7 days after this

I have reviewed you plan and it has officially been terminated as of 01/12/2023. Assets do still remain in the plan and will cause for billing to still occur until they are removed. Billing will cease from the company bank account and be funded through the participant assets until removal. I have included the involuntary distribution form below for completion to provide the employees with a 30 day notice to remove their funds before they are forced out of the plan”

This company was looking to begin a SIMPLE plan effective 1/1/2023, is this still possible knowing the above info?.