SIMPLE Plan
We have a SIMPLE plan that was established back in 2000. For individuals who have met the requirements let say in July 2016, can they enroll anytime throughout the year for the current year or are they limited to Nov 1st to Dec 31st of each year for the following year?
Permalink Submitted by Alan - IRA critic on Fri, 2016-11-04 16:35
They must wait until the following year. Was an error made for the current year participation such that employee was eligible in January?
Permalink Submitted by Wendy Mommaerts on Fri, 2016-11-04 18:39
No, this is just an example….I wanted to know when an individual is eligible for 2017, does this individual need to wait until 11/1 – 12/31 to enroll for 2017?
Permalink Submitted by Wendy Mommaerts on Fri, 2016-11-04 19:38
No, this is just an example….I wanted to know when an individual is eligible for 2017, does this individual need to wait until 11/1 – 12/31 to enroll for 2017?
Permalink Submitted by Alan - IRA critic on Fri, 2016-11-04 19:47
Yes, he should enroll now for 1/1/2017.
Permalink Submitted by Wendy Mommaerts on Mon, 2016-11-07 15:10
If in June of 2016 the employer knew this individual will be eligible for 2017, could the employer have had the employee sign the enollment forms back in June for 2017 or would he have to wait until 11/1/16 – 12/3/16? If in June of 2016 an employee declined to enroll for 2016 and has since changed their mind and wants to now enroll, can the employer have the employee sign enrollment forms for 2016 or does this employee need to wait until Nov to enroll for 2017? Can an employee join a SIMPLE plan anytime during the year if he meets the contribution requirements?Reason that I am questioning this is that I was told it’s up to the employer on when the employees can enroll (Could be monthly/quarterly)
Permalink Submitted by David Mertz on Mon, 2016-11-07 15:52
The plan is *required* to allow the election to be made during the 60 days prior to the beginning of the calendar year, as Alan said, and the 60 days prior to the day the employee first becomes eligible. However, a plan is permitted to allow other election periods, so review the SIMPLE plan agreement for this plan to see if any additional periods are allowed.