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SIMPLE IRA (Roth)


M Norton

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Secure Act 2.0 contains provisions for Roth contributions to SIMPLE IRAs beginning 2023.  Has anyone seen any documents that offer that option?  I have looked at the IRS website at forms 5304-SIMPLE (Rev. March 2012) and 5305-SIMPLE (Rev March 2002).  Neither has been updated to provide for Roth.  Is that really an option if the federal forms don't offer it?

I am working on preparing notices to clients that sponsor SIMPLE plans and want to make sure I cover the options available.

Thanks.

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Firms such as financial service firms or brokerage houses offer SIMPLE plans that the firms offer using their own adoption agreements/basic plan documents.  (These companies typically will not hold accounts for SIMPLE plans set up using the IRS Forms 5304 or 5305.)

It is possible one or more of these firms has plans is marketing SIMPLEs with Roth contributions, although I have not seen any firms advertising that they offer them.  Perhaps some of our BL colleagues are aware of firms that do.

 

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Thanks, Paul I.

Most of our clients have used the IRS forms, not custom adoption agreements.

I would expect the IRS to update its forms if a SIMPLE sponsor is required to offer Roth options, but the SECURE 2.0 Act did not indicate whether it was optional.

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