SIMPLE IRA Employee
Simple IRA has two year restriction & 5K compensation requirement
Does that mean 24 months continuous employment?
Per TaxFActs I disagree, but am looking for verification.
Buz
Simple IRA has two year restriction & 5K compensation requirement
Does that mean 24 months continuous employment?
Per TaxFActs I disagree, but am looking for verification.
Buz
Permalink Submitted by Denise Appleby on Fri, 2007-09-21 22:56
I am curious. What exactly does Tax Fact say?
The requirement is that an employee must be allowed to participate in the SIMPLE IRA, if he/she received at least $5,000 in compensation ( from the plan sponsor) during any two previous years and is reasonably expected to receive at least $5,000 in compensation during the current calendar year. For instance, if the employee earned at least $5,000 in 2006 and 2004, that “any previous two-years” requirement would be met. The two years do not have to be consecutive.
Permalink Submitted by George Livingston on Sat, 2007-09-22 16:06
Tax Facts repeat your first sentence.
My interpretation is that there is no 24 month employment requirement.
I just wanted to bounce it off someone more knowledgeable than me.
Thank you very much
Buz