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



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.



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



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