SIMPLE IRA Rule relating to re-hire.

Submitted by Kevin Zoltek on Fri, 2012-01-20 19:11

When I re-hire someone, can we use the original hire date for eligibility, or do we use the re-hire date?



Submitted by Alan Spross on Fri, 2012-01-20 20:04

If the re hire meets whatever prior year compensation requirements per the 5304 or 5305 form, they should be eligible. The prior earnings would count.

For that matter if they participated in the plan before, that time should also count for purposes of their 2 year distribution waiting period.

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