Saver’s Credit
Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit
July 2, 2009
Can I terminate my SIMPLE IRA Plan in mid-year?
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Can I terminate my SIMPLE IRA Plan in mid-year?
Times are tough and I can no longer afford to make contributions to my employees SIMPLE IRAs. Can I terminate the Plan during the middle of the year?
Unfortunately, you cannot terminate your SIMPLE IRA Plan or choose to suspend contributions in the middle of the year, regardless of the financial status of your business.
According to the IRS, SIMPLE IRAs cannot be maintained for less than a full calendar year, except in cases where a new SIMPLE IRA is established after the beginning of the year. As such, you must make the contributions which were promised to your employees when you provided them with the notification.
See the post Employer must repay contributions plus interest to SIMPLE IRA.
