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On second thought (sorry it took so long), I think the rehired employ should be given notices and allowed to participate in the year of rehire. In certain situations, the requirement that specific information, notices, and elections regarding a SIMPLE be given before the beginning of the 60-day period for making or modifying a salary reduction election may be waived. Such situations include instances when an employee becomes an eligible employee other than at the beginning of a calendar year because 1. The plan does not impose a compensation requirement for prior years; 2. The employee satisfied the plan's compensation requirement for prior years during a prior period of employment with the employer; or 3. The plan is first effective after the beginning of a calendar year. [I.R.C. §§408(l)(2)(C)] If any of the foregoing circumstances apply, the eligible employee must be permitted to make or modify a salary reduction election during the 60-day period that begins on the day plan notice is provided to the employee and that includes the day the employee becomes an eligible employee or the day before. By allowing the 60-day period to start on the day plan notice is provided to the employee (instead of on the next day), a rehired employee, for example, will not have to wait until the following year to become eligible. Thus, in this case, the salary reduction election will become effective as soon as practical after receipt by the employer (or, if later, the date specified by the employee in the salary reduction agreement) but any election made by the eligible employee may be modified prospectively any time during the 60-day period. It would be impractical to require notice before the date of eligibility in such situations because that day or the identity of the employee, or both, is not always known. [See SIMPLE IRA plan LRM §§6–7 (Apr. 2005)] These rules would most likely also apply to adopters of model plans. [SIMPLE LRM - attached] Example. Stacy was a participant in her employer's SIMPLE IRA plan until she severed her employment in January 2021. On May 1, 2021, Stacy was rehired and provided notice of the opportunity to make a salary reduction election. The 60-day period that started on May 1 includes the day Stacy became an eligible employee (May 1, 2021). If it were not for the special rule, the 60-day period could not start until May 2 and thus could not include the day Stacy became eligible (May 1) or the day before (Apr. 30). Therefore, Stacy would have to wait until the following year to participate (i.e., the first year for which the 60-day period could include the day she became an eligible employee for that year or the day before). In all cases, the salary reduction agreement should become effective as soon as practical after receipt by the employer (or, if later, the date specified by the employee in the salary reduction agreement), but any election made by the eligible employee may be modified prospectively at any time during the 60-day period. Hope this helps. simpleplan_lrm.pdf

That's a joke, I say, that's a joke, son! I’ve never seen a document include language suggesting a participant go fly a kite either. Although it might have been fun to slip it into one BITD when we did individual DL submissions, just to see if it got thru.

I think so according to this: 26 CFR 1.415(c) 1(b)(6)(i)(C) Date of employee contributions. For purposes of this paragraph (b), employee contributions, whether voluntary or mandatory, are not treated as credited to a participant's account for a particular limitation year unless the contributions are actually made to the plan no later than 30 days after the close of that limitation year.