SIMPLE IRA Mid Year Termination and Combo Replacement Plans

Welcome to another episode of Case of the Week!

In this episode, Emily Nunez, ERISA Consultant at RLC, discusses a mid-year SIMPLE IRA plan termination and replacement. Our consultants recently received this question from an advisor in Arizona.

Key Takeaways: A plan sponsor can terminate a SIMPLE IRA plan mid-year if replacing it with a Safe Harbor 401(k) plan, but it would be prohibited from installing a cash balance plan until the next plan year.

Learn More: As financial professionals, you play a pivotal role in guiding clients through retirement plan complexities. For a detailed written version of this case and more information on cash balance plans, visit our website: retirementlc.com