Can a church set up a Simple IRA plan for its lay employees?
I seem to remember that the Simple IRA is not an option for churches, but I can't find that documented any place.

Thanks.

From IRS Notice 98-4

Q. B-4: Are tax-exempt employers and governmental entities permitted to maintain SIMPLE IRA Plans?

A. B-4: Yes. Excludable contributions may be made to the SIMPLE IRA of employees of tax-exempt employers and governmental entities on the same basis as contributions may be made to employees of other eligible employers.

I think maybe it could be a problem because the ordained ministers can participate in a denominational retirement plan. The plan is not sponsored by the individual church but by the denomination.

Does that cause a problem with the ban on an employer having both a SIMPLE and a qualified plan at the same time?

Today someone said that they thought ministers are considered self-employed and therefore ineligible to participate in a retirement plan sponsored by the local church or ministry. Does that sound right? If so, that could be the resolution.