Jeannine Posted January 13 Report Share Posted January 13 Can a Simple IRA for a business with less than 25 employees be established only for W-2 employees and exclude contractors paid through 1099? If it can, anything they need to be careful about? Link to comment Share on other sites More sharing options...
Bri Posted January 13 Report Share Posted January 13 Actually, it has to - contractors aren't employees. Jeannine, Bill Presson and Lou S. 2 1 Link to comment Share on other sites More sharing options...
Jeannine Posted January 16 Author Report Share Posted January 16 If it is a small business with a husband and wife team, can they be included as well? From research it looks like they aren't considered W-2. However, they did previously have a solok, so when they deferred into the plan, wouldn't that have been considered W-2? Purpose of post - how can a husband and wife team along W-2 employees to be part of a retirement plan that doesn't require testing? They are not interested in a 401k. Thanks! Link to comment Share on other sites More sharing options...
Bri Posted January 16 Report Share Posted January 16 They could do a SIMPLE - nothing for non-employee contractors, W-2 employees would be offered if they met the eligibility rules being established, and the owners' contributions "from the company" beyond their deferrals would be a function of their net earnings from self employment (since they're owner-employees not getting W-2s). Lou S. and Jeannine 1 1 Link to comment Share on other sites More sharing options...
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