Captive Simple Plan
Can a company set up a simple plan in which the employer has a single provider for the plan? If so, how is this done?
Can a company set up a simple plan in which the employer has a single provider for the plan? If so, how is this done?
Permalink Submitted by Alan - IRA critic on Wed, 2015-05-13 22:28
Yes, the designated financial institution (DFI) should be identified, and the plan established using Form 5305 SIMPLE which means that all initial contributions to each employee’s SIMPLE IRA be made to that institution. Both the employer and the DFI must sign the document. The form can also be used to meet employee notification requirements.