When It comes to developing a great 401(k) and/or cash balance proposal, one of the great sticks in the wheel is when it’s known that a plan sponsor has a SIMPLE plan in place. The problem with the SIMPLE IRA or SIMPLE 401(k) plan is that it has to be the plan sponsor’s exclusive plan for the year and that’s a problem when it’s been funded for that year.
Sure, a plan sponsor can avoid the hassles of filing a Form 5500 by having a SIMPLE plan, but I assure you that they aren’t that simple, they’re just SIMPLE.
