Simple IRA to 401(k)

Upgrading a client from Simple IRA to 401(k)?

Don't sweat it, here is what you need to know.

2024 is the first year a client is allowed to do this during the plan year.

60 day notice of Simple IRA termination to participants is required.

The 401(k) must start the day after the Simple IRA is terminated.

The 401(k) must be a safe harbor match plan.

Contributions are weighted based on the start date (short plan year for the 401(k)).

The 2 year restriction on Simple IRA rollovers is waived.

Get a Third Party Administrator (TPA) involved so it doesn't get messed up!

--> @drewtirney