Simple Plan Question
Hello,
This is related to a change from SECURE Act 2.0. It is clear that now a SIMPLE plan can be replaced mid-year with a safe harbor 401k.
There is language in the statue that talks about the 2-year funding requirement for a SIMPLE to be rolled to the 401k is also now waived. My questions are:
1. Do you interpret this waiver only be applicable in the event of a SIMPLE being replaced mid-year with a SH 401k?
2. Or would the waiver apply if a SIMPLE is being replaced by a 401k in any capacity? Meaning it would apply if replacing with a Non-SH 401k? Would it apply if being replaced on January 1 and not mid-year?
A mutual fund provider is taking the stance that this 2-year waiver is its own rule and not related to the new mid-year SH 401k replacement allowance.
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2024-01-31 23:34