Establishing a SIMPLE

[Responsible4Employees]

We are establishing a SIMPLE using the 5305 form as a business that has been in operation for years, but we have never had a retirement plan.  The IRS notes that the election period can be amended if the plan is established between January 1, and October 1.  Does this mean that we can reduce the 60 day election period, and enroll our employees immediately if they all turn in their form?

[Flyboyjohn]

You can't reduce the 60 day election period (you have to allow eligible employees to enroll during the entire 60 day period) but you can start contributions immediately following receipt of their elections before the end of the 60 day period