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SIMPLE IRAs - eligible employees


Guest JPCMPLS
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Guest JPCMPLS

Can a controlled group of employers adopt a SIMPLE IRA plan solely for its union employees? The model IRS form allows exclusion of union but not non-union. any thoughts?

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  • 3 weeks later...

Gary,

Doesn't the SIMPLE have to cover ALL employees, with the exception being union employees covered by a collectively bargained plan?

It looks to me like you could not exclude non-union employees from the SIMPLE, and you could not have another plan for the non-union employees, since you generally cannot have any other plan along side a SIMPLE.

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

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I agree, BUT getting a SIMPLE document to allow for the non-union exclusions doesn't exist, so I suggested the PLR approach (assuming a QP wdn't be a better approach). As long as the SIMPLE IRA covered unionized employees only only, (it sd be okay)--said better, should receive a favorable ruling from IRS.

The union must agreed to this or any other plan. To just open a plan for them (i'm told, without bargaining) is an unfair labor practice.

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