Jeannine

Thank you! From the information I found, it looks like the plan cannot be effective before the plan is adopted. So, it looks like we cannot date the Simple IRA for year 1 as January and must select a date of March 1, for example? From an employee side (W-2), they can't make up the contributions from January to March, correct? Is the employer's match or non-elective prorated based on EE salary from March to December or can they contribute based on full year comp?

A husband and wife are both self-employed and 50% owner of each other's companies. Wife's company has (1) W-2 employee. Husband's company is hiring (1) W-2 employee. They want to start a Simple IRA under wife's company, they will both participant including the employee under wife's company. Can employee (2) under husband's company also join the Simple? Or would each company need to set up their own Simple IRA? Thanks!

A husband and wife each own their own business with 50% ownership in the spouse's business. There is (1) W-2 employee in the wife's business. However, they are looking to hire in the future. There are several contractors. They had a solo 401(k) - but terminated the plan in 2022. What plan options are available to allow husband and wife to be part of a plan, along with the W-2 employee - they do not want to include contractors. Note - they do not want the administrative burden/testing requirements of a 401(k) at this time. Another question - after researching, self-employed individuals appear to be considered sch. c. However, in order to defer into a solo(k) for Roth deferrals, would they have been treated as W-2? If so, would this allow them to start up a Simple IRA for themselves and the employee? Thanks!

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!

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?

Hello a husband and wife own two businesses, each are 50% of each company. 1 company sponsors a solok - no employees under that company other than them. The other company wants to set up a retirement plan for (2) employees, one is a W-2, the other a 1099. Can they open a Simple IRA or what options do they have? Do husband and wife opt out of this plan or can they also contribute? Can 1099 employee be included or they need to set up a SEP IRA? Their goal is low administration on the plan for the employees, so not a regular 401k. Thanks!