Allowable Start Date for SIMPLE IRA Plan

[Guest SPollock]

I have a prospect that would like to set up a SIMPLE IRA Plan with deferrals beginning in year 2000. If we give the employees notification on December 1, 1999, can we begin the deferrals after the 60 day period, ie February 1, 2000?

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[Gary Lesser]

Deferrals may start on January 1, 2000. Since notification was made on December 1, 1999, employees may elect to participate/or change for 60 days. If deferrals start no sooner than the end of the 60 day period, then all participating employees will be known when program kicks of.

[Gary Lesser]

Deferrals may start on January 1, 2000. Since notification was made on December 1, 1999, employees may elect to participate/or change for 60 days. If deferrals start no sooner than the end of the 60 day period, then all participating employees will be known when program kicks of.

[richard]

Do any of the timing requirements discussed above change if there is the 1-3% company match or the 2% nonelective company contribution?

Also, what are the plan document requirements for Simple IRAs?

[Gary Lesser]

The rules remain the same. Model plans and prototype plans are available from many financial organizations.