Doogan

thank you!

Hi, we offer a simple IRA. Our employee base is all per diem hourly workers. My question is, during open enrollment (11/1-12/31), does every employee have to re affirm their selection? or if they ignore the offer and are already enrolled in the prior calendar year (2022), should I continue their withholding into 2023 I know it might be off for some of you to read that an employee would not reply to this, but this is the reality with my workforce. thanks

yes -Fixed amount, and yes - exactly - they are accruing it for employee. I have told them to cancel this now on all of my part time folks... when they work - they withhold. thanks

My thoughts exactly - I had not even thought that this would be an issue.

Hi, I have some employees who elected to participate in my plan this year who are per diem. Their longevity and income over 2 prior years made them eligible. However I am seeing recently that some employee's may not work for a couple of weeks at at time. My payroll company is accruing their contributions and are planning on withholding on the next paycheck. Since its an employer sponsored plan, they are not giving me any guidance - they are saying they will do what every I advise. Are there any rules around this? Given the workforce I employ, withholding 4-5 weeks of accrued contributions, even though it will go into their plan, will still be large hit to the employees in question and I suspect they will not be happy about. Trying to get ahead of this. appreciate any insight. thanks Vincent

Hi Bill, Thanks for your reply. What additional information would be needed to be sure? Glad to provide I assume I would have to open a separate Simple IRA account under the second company, and have the employee open her account there?

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

Thank you - Yes - 1/2/2020 was a typo. I guess I am just over reading it and over complicating it. Just want to make sure I am doing it correctly - thank you

Thanks for your reply I understand that the employee would be eligible effective 1/2/2020. I still don't understand what that second statement means. "However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before" can you give me an example of when it might be applicable. Sorry - just not putting this together

Good evening. I have a simple IRA setup, but Looking back I am stuck on some of the fine print and want to make sure I am doing it right. Probably over thinking this. My eligibility requirements for example are as follows. For our plan year 2020, you have to be expected to make at least 5 K in 2020, and also have made in 2 preceding years (2018 & 2019). What I am stuck on is the second part of the following statement. "For a calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year" - Ok with this "However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before" What is this saying? My understand that eligibility is based on calendar year, so lets say, an employee earned 5K in 2018, and 2019, and are expected to in 2020, I would have given them the notification paperwork prior to the 60 day notification period ending Dec 31st.