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Doogan

2 companies - Simple IRA Offering?

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Hi everyone 

I have 2 companies. 

Company A has existing for some time, I offered a simple IRA out for year 2020

Company B was formed in 2019 (Different state). 

An employee of company A, who has worked with me full time for many years resigned in 2018. Employee came back to company A in mid 2019, and when I opened Company B, employee relocated to the state Company B located in and came on board full time as an employee of company B in 11/2019

Should I be offering this employee the opportunity to participate in a simple IRA, given that employee was working for one of my companies making over 5K for multiple years.  

Or, should this be kept separated and wait for the 2 years period etc?

I own both entities, Company A, 50% with my wife and the company B 100%

I have no problem offering it out, and making up any discrepancy over the past 2 months if needed. Just want to to whats right

 

thanks

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Not quite enough info to be sure, but it is highly likely that the two companies constitute a controlled group. A SIMPLE IRA is required to cover all members of the controlled group. So when you offered the SIMPLE IRA, it should have been to everyone.

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