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Simple IRA's & Davis-Bacon Wage Act


Guest Tom Fields

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Guest Tom Fields
Posted

I can not find any guildence on if a ER can use a Simple IRA for any EE's that they do not provide benefits for under the Davis-Bacon Pervailing Wage Act. That is, are they prohibited from using a Simple IRA if they must give specific benefits to certian EE's under Fed regs. Any help on this is greatly appreciated. Thanks

Posted

A simple plan may be maintained for non union ee/s even though contributions are being made for unionized employees in a separate plan (see IRC Section 408(p)(2)(D)). As you point out, the simple would not be useable in a Davis-Bacon situation.

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