S/E SIMPLE and S/E 401k in same year

[Kram BergGold]

My client switched from a SIMPLE to a self-employed 401 k mid year. Is this ok?

[JG EA]

My client switched from a SIMPLE to a self-employed 401 k mid year. Is this ok?

I don't know much about this. Found some information for what it is worth.
A little discussion:

http://benefitslink.com/boards/index.php?showtopic=38265

Then these answers are on this site: http://www.401kbrokers.com/rothfaq.htm

Q: Can I have a Solo ROTH 401k account and a traditional IRA at the same time?

A: Yes you can. However, the two are related in that if you are an active participant in a qualified plan (say, for example, a Solo 401k plan) limits are placed on the amount of a contribution to a traditional IRA that is deductible. For single individuals and heads of households, the part of the contribution to a traditional IRA that is deductible phases out ratably if MAGI is more than $45,000 and less than $55,000 in 2004. In 2005, it phases out ratably if MAGI is more than $50,000 and less than $60,000. However, the amount deductible will be at least $200 if the MAGI is less than the high end of the phase out range.

Q: Can I have a Solo ROTH 401k account and a ROTH IRA at the same time?

A: Yes you can. The two are unrelated. They each have their own contribution conditions and limits and contributing to one does not reduce the contributions you can make to the other. The citation for this authority is a telephone message left on our voice mail on 2-21-2007 at 9:52 a.m. by Don Curlzyk of the IRS, in response to an email we sent to retirementplanquestions@irs.gov. Mr. Curlzyk's telephone number is 513-263-3573.

Q.Can I have a SIMPLE-IRA and a Solo 401k plan with a ROTH account feature at the same time?

A: No you may not. Because SIMPLE plans often have exclusive plan rules, they are generally not allowed alongside a Solo 401k. However, you can easily terminate your SIMPLE plan and start and contribute to a Solo 401k for this year. Here's how the IRS says to terminate the SIMPLE...