SIMPLE IRA notification

[SMB]

Employer wants to establish a SIMPLE IRA effective January 1, 2008.

Since it is already mid-November, will the 60-day notice requirement be met for 2008 if employees can make (or change) salary deferral elections on a "daily" basis - versus only as of January 1st?

[jevd]

Employer wants to establish a SIMPLE IRA effective January 1, 2008.

Since it is already mid-November, will the 60-day notice requirement be met for 2008 if employees can make (or change) salary deferral elections on a "daily" basis - versus only as of January 1st?

SEE IRS NOTICE 98-4

98-4

See section "E"

It appears that as long as there is a 60 day notice period for a new plan and the employees can choose to defer during that period then the Employer will be ok.