So my girlfriends employer started offering a simple or a couple of years ago and i told her to sign up to get the 3% match they were offering. today her employer sent out a group text saying that february will be the last month with edward jones and the simple ira and they would be changing to calsavers. my understanding is that calsavers is just a roth ira administered by the state of california and that her employer will then not have to match contributions. trying to research this i came across terminating a simple ira mid year and with secure 2.0 you can do this but you have to transition to a safe harbor 401k instead. is her employer breaking the rules by not offering a 401k and going to calsavers instead. Also not giving her adequate notice?
should she contribute to the calsavers account? wouldn’t it be better to just contribute to a roth ira on her own through fidelity?
what happens to her simple ira? is she able to roll those funds into a traditional ira and then possibly do a roth conversion?
Seems like her boss is just trying to get out of having to match the simple ira contributions but i think she may be breaking some rules here.