SIMPLE and controlled group

[Santo Gold]

Can any company that is part of a controlled group adopt a SIMPLE? If so, would it follow then that either all members of the CG MUST be eligible for the plan or that all members are included for testing purposes, even if not eligible to be in the plan (which would seem to take the simple out of SIMPLE).

Is it even permitted for all members of a CG to adopt a single SIMPLE?

Thanks

[Belgarath]

I assume you are talking about a SIMPLE-IRA - yes, a controlled group can adopt the SIMPLE, but it must cover ALL employees of all CG/ASG members, who satisfy the normal eligibility requirements. There isn't any coverage testing - you just have to cover everyone who is eligible. Watch out for the 100 employee limit in the CG/ASG...

[John Feldt ERPA CPC QPA]

And it must be the exclusive plan for the group