Company has operated a Simple IRA for 2024 and contributed monthly for active participants.

Company also had setup a Cash Balance Plan mid year 2024 and now being instructed they should terminate the Simple IRA and liquidate funds contributed for 2024.

Can you confirm the following?

1.)They cannot operate both a Simple IRA and Cash Balance Plan for the same calendar year.

2.)If #1 is true, since they have been operating an active Simple IRA throughout the year, they cannot/should not have setup a Cash Balance Plan and that is the one that would be terminated, not the other way around as they have been instructed.  And ultimately setup for 1/1/2025 as a Cash Balance Plan going forward if chosen without the Simple IRA.

Thanks for the advice.