Simple 401ks came into being in 1995, they were effectively made obsolete by the creation of SIMPLE IRAs and/or the Safe Harbor 401k in 1996 via the Small jobs protection act. What I think TT Roberts is referring to is the one person 401k. Also known as the Uni-K, Solo-k or Single K. SIMPLE 401ks are an outdated plan design and should never really be offered as a plan design solution to business owners. There are still a few out there, but no new ones should really ever be written.SARSEPs were deleted back in the mid 1980's, again a few still survive, but no new ones could be written since they were removed from the code.Putting a group annuity inside a SIMPLE IRA, is possibly the worst thing you could do in terms of costs to a participant. There is little to administration fee for SIMPLE IRAs, so the lower fee argument via an insurance company does not stand up.An annuity product will give you access to Insurance company separate accounts (Not mutual funds) and expose you to surrender charges and substantial wrap fees.Bill
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