If you are – make sure to notify your employees before November 2, 2018.
If you own a business and you currently have a SIMPLE IRA in place for your employees, you have to wait until 2019 to put a 401(k) Plan or a Cash Balance Plan in place. One of the rules with a SIMPLE IRA is the exclusive plan rule. This rule states that if you sponsor a SIMPLE IRA, you cannot have another qualified plan with the SIMPLE IRA in the same year. In addition, you cannot terminate a SIMPLE IRA in the middle of the year.
If you want to terminate your SIMPLE IRA at the end of 2018, you need to notify your employees before November 2, 2018 (at least 60 days in advance). Click here to see the other steps needed to terminate a SIMPLE IRA.