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Does anyone know or have a reference as to whether a small employer subject to the automatic increase in the deferral limits for a SIMPLE starting in 2024 can elect to make the higher contributions? Notice 2024-2 clarified that employers with more than 25 employees can elect the higher limits and must make the higher employer contributions (4% match or 3% NEC) but are the small employers able to elect the higher employer contributions? I have not been able to find anything that says they can (or cannot). SIMPLE IRAs are not my wheelhouse so I appreciate you in advance!

What say all you interesting people - in light of the new SECURE 2.0 rules for mid-year replacement of a SIMPLE IRA program with an appropriate 401(k) w/ safe harbor - is 60 days notice to participants required? Typically employers would have to notify folks by Nov 1 that the SIMPLE would not be continuing for the upcoming year. Since we are past Nov 1, do folks think notice now is sufficient? Assuming that effective Jan 1 there is an allowed replacement (401(k) SH as provided in SECURE 2.0), is notice now enough? 30 days? Something else? Seems like there is interest in having no SIMPLE in 2024, for a cleaner break, if that is possible. If there is another thread already discussing this, please point me in that direction. Thanks!

Secure Act 2.0 contains provisions for Roth contributions to SIMPLE IRAs beginning 2023. Has anyone seen any documents that offer that option? I have looked at the IRS website at forms 5304-SIMPLE (Rev. March 2012) and 5305-SIMPLE (Rev March 2002). Neither has been updated to provide for Roth. Is that really an option if the federal forms don't offer it? I am working on preparing notices to clients that sponsor SIMPLE plans and want to make sure I cover the options available. Thanks.

Scenario: SIMPLE IRA went "bad" (disqualified) several years ago due to failure to offer the SIMPLE to the employees of a related company. Cost to make corrective contributions under EPCableRS for the employees of the related company would be exorbitantly expensive so the only viable option is to treat the contributions as not having been made to a "qualified" SIMPLE IRA. There's no official guidance on how to handle this so our thought is: 1. For the year's still open under the statute of limitations have the employer amend the W-2s to add the deferrals and the match to Box 1 wages and the match to Box 3&5 SS and Medicare wages. There should be no income tax impact to the employer but will owe SS & Medicare tax on the match amounts (employer will also pay employee share).. 2. At the participant level treat additional income amounts as contributions to a traditional IRA. Depending on the employees situation the contributions may be deductible, non-deductible or excess. Employer will cover the costs associated with amending the employees individual tax returns and paying additional taxes but due to the small amounts involved it's believed that the vast majority will be deductible so the net tax impact to the employees will be negligible. Anything we're missing?

The employee contribution limits for SIMPLE IRA and SIMPLE 401k is currently - $13,000 for Employee Contributions and an additional $3,000 for employees over 50 years of age. Does anybody know whether this limit applies individually to Simple IRA and Simple 401k or combined. Example is if the employee is over 50 and contributes to both Simple Ira and Simple 401k in the same year. Is the overall limit still $16,000?

Sponsor of SIMPLE IRA has employee who did not elect to defer until mid year. Then she deferred 7% until the end of the year. Employer pays match up to 3% each pay period. At end of year, the employee had averaged, say, 3.5% and should receive 3% match on full year compensation. Employer says he doesn't want to pay true-up, that he put it in each pay period and because she chose not to start making deferrals until mid year, he should not have to pay the additional match. Is that an option in a SIMPLE IRA? What are the risks of not making the additional match contribution? The employee is unaware that she may be entitled to additional ER match. Thanks!

Single-member LLC dentist sponsored a SIMPLE IRA for about 8 years. He sold his practice mid-2018 and all employees now work for the new dentist's company. What happens to the SIMPLE IRA accounts? Should notices be provided to the employees or to the custodian of the SIMPLE IRA accounts? Could the new dentist assume sponsorship of the SIMPLE IRA or would he need to start a new plan if he wants one? Thanks!

Good afternoon to all, Our client, a P.A. we will call Company A, sponsors an active 401(k) plan. Very soon (like in 2 weeks), Company B is buying Company A. Company B, not currently our client, sponsors an active SIMPLE IRA plan. Company A will continue to exist and pay salaries to its owners out of receivables through 12/31. The staff of Company A will be paid by Company B from 08/15/2018 forward. The owners of Company A will continue to make deferrals out of their salaries but the employees of A will no longer have any mechanism for making deferrals to A's plan. Company A, in a perfect world, would have liked for Company B to assume sponsorship of Company A's existing 401(k) plan, open it up to all of Company B's employees, and move forward with as little disturbance as possible. However, we are pretty sure that Company B can't have a SIMPLE IRA and assume sponsorship of a 401(k) plan in the same year. Company A's next preference would be to have Company B take over the existing 401(k) plan as of January 1, 2019. This leaves the employees of Company A without a way to make deferrals from 08/15 through 12/31 since they have no pay coming from Company A anymore after 08/15. Is that permissible, to just suspend their ability to make deferrals and then have them be able to once again on January 1? Has a partial plan termination been triggered by the change of how the employees get paid as of 08/15/2018? If it matters, most of the employees of A will still be employed, by B, as of 08/15/2018, but not necessarily in the same jobs they had before. It should be noted that at this moment we do not know (and neither does our client) whether this subject is addressed in the buyout agreement and we do not know the wishes of Company B. Any advice on the correct way to handle this will be greatly appreciated! Thanks in advance.

Quick question: Can a SIMPLE IRA balance be rolled into a 401(k) balance?