Gary Lesser Posted September 4, 2003 Posted September 4, 2003 An attorney with Mullen & Henzell in Santa Barbara, CA, recently received a Compliance Statement on an Employer Eligibility Failure under Revenue Procedure 2003-44. The IRS did NOT impose the additional 10 percent fee on the "Excess Amount" (elective and matching contributions made over a 4-year period) that were permitted to be retained (remain) in the SIMPLE IRAs (subject to IRC Sec 408(p)). The attorney made a very convincing argument as to why the penalty should not apply. FFI, the attorney's name is Christine P. Roberts (805) 966-1501.
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