R. Butler Posted October 30, 2002 Share Posted October 30, 2002 It is my understanding that employees meeting the eligibility requirements in SIMPLE-IRA plan do not actually enter the Plan until January 1 (assuming IRS 5304-SIMPLE document). For example, if eligiblity requirements are $5,000 in a prior year, Employee hired 12/01/01 earns $1,000 during 2001, from 01/01/02 thru 05/31/02 earns $5,000. Employee would enter 01/01/03, not any earlier. Is this a correct understanding? Only possible mid-year entries I see (again assuming IRS 5304-SIMPLE) are rehires, union to nonunion or if there are no eligibility requirements new hires could pick up deferrals as provided in the document. Am I missing anything? Thanks in advance for any guidance. Link to comment Share on other sites More sharing options...
Gary Lesser Posted October 31, 2002 Share Posted October 31, 2002 Agreed. Assuming $5,000 is required in only _one_ prior year (up to 2 could be selected) and reasonable expected to earn $5,000 (as stated in document) for current year, they would enter on 1/1/03. Link to comment Share on other sites More sharing options...
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