No SIMPLE-IRA document

[Belgarath]

So, employer apparently operated a SIMPLE-IRA plan without ever completing and signing a document! Quite a trick. Anyway, when submitting for correction with a 14568, Schedule D, they ask for a copy of the current document. Since this isn't possible, obviously, I presume you would just include this in the narrative that there isn't an existing document.

Anyone ever done one of these, and had the IRS request anything additional?

 

Thanks,

[ETA Consulting LLC]

You're, partly, trying to fit a square peg into a round hole; it can be done.  You are, basically, using the section saying the plan wasn't timely updated for recent law changes.  However, in the write-up on how the failure occurred, you're explaining that there was never a document.  This would beg the question of how did you satisfy the notification requirements to the employees each year.  Was there a model form for the notification and summary description?

We know what should've been done, but do we really have a full differentiation between that and what was actually done in operation?  That may be necessary before completing the Schedule D.

Good Luck!

[Belgarath]

Thanks. They did actually do a notification each year - just not a model notification. It was more of a paragraph on their annual benefits notifications/elections. This is according to the accountant - I have not seen any of this documentation, so my knowledge of the situation is based upon a phone call only.

The submission is indeed using a shoehorn to fit it into the most reasonable "pigeonhole" in the SIMPLE submission documents, but I don't see where anything else really fits, either. I don't know what other "fix" could possibly be done, anyway - you have a plan with no document, you adopt a document!

Of course, I can't guarantee the IRS will accept it without asking for the documentation you have mentioned - and of course there was no SPD (the modified "SPD" normally required for a SIMPLE) but you can't retroactively provide an SPD anyway.

I doubt the IRS would disqualify the arrangement - I'd like to think not...