SIMPLE IRA Entry dates

[Guest AEA]

A SIMPLE IRA Plan (on Form 5304-SIMPLE) provides that all employees are eligible (full eligibility) and allows employees to make or modify salary reduction elections on a monthly basis during the 30 days before that month. When a new employee begins working, he or she is given a SRA form and told may be able to begin deferring in the plan immediately.

So long as the deferral actually begins at the beginning of the following month, the SIMPLE plan is being operated in accordance with the document and federal law, correct?

Feel like I'm missing something (because the broker is questionning the employer allowing employees in throughout the year) ...

Thanks for the assist!

[Gary Lesser]

With multiple entry periods provided in the plan, there is no problem with allowing employees to make or change an election for the following month.