We have a SIMPLE plan that has been established for numerous of years and the owners finally have employee’s that are eligible to enter into the plan
Is the enrollment period for SIMPLE plans Nov 1st – Dec 31st of 2017 for the plan year 2018?
There is a $50/day penalty if you didn’t provide a timely notice/enrollment period. There is the possibility of a waiver, but I don’t know if this fact pattern would qualify as reasonable cause. There are likely other consequences if you don’t allow the election and deferral by the first pay period of 2018
Permalink Submitted by Alan - IRA critic on Fri, 2017-12-29 02:44
11/2 to 12/31. The employer should have notified the eligible employee per the plan eligibility requirements prior to 11/2.