SIMPLE Eligiblity $5k per year or $5k cumulative
Eligible participants in a SIMPLE plan are any employees that earn at least $5,000 during any two preceding calendar years. Is that $5,000 in each of two separate years or $5,000 over the course of two years?
for example I earn $3,000 in year 1 and $3,000 in year 2. Does that qualify as “at least $5,000 during any two preceding years”?
Permalink Submitted by Alan - IRA critic on Wed, 2017-09-13 15:46
The earnings requirement applies separately to each calendar year, not to the aggregate earnings. Same applies if employer reduced the earnings amount to 3,000 from 5,000.