Not-for-Profit SIMPLE IRA Plan

[Guest SPollock]

Can a nonprofit (501©(3)) organization set-up and maintain a SIMPLE IRA plan? Can they do a SIMPLE 401(k) Plan? I am pretty sure than can set-up a Standard 401(k) Plan and a Safe-Harbor 401(k), but I am not positive? I appreciate the help!

[Bill Berke]

401(k)(4)(B)(i) says tax-exempts can have 401(k) plan. 401(k) (11)(D)(i) refers to 408(p) in which you find (p)(2)©(i) which says any employer can have SIMPLE if no more than 100 employees had more than $5,000 of comp. Thus, I think a not-for-profit company can have 401(k) SIMPLE or IRA SIMPLE.

[Gary Lesser]

Yes, a SIMPLE IRA may be established by a tax-exempt employer. [Notice 98-4, B-4]