LLC retirement plan
I have a client who has a trucking business that is a LLC with him and his wife are the only members. They would like to start a retirement plan for themselves but they have truckers who they employ. Would the LLC need to offer a retirement plan to these employees or could they set up one with just the two members.
Permalink Submitted by Alan - IRA critic on Fri, 2018-10-26 18:35
They would have to include eligible employees, but with a SEP or SIMPLE IRA they could adopt a restriction that requires employees to have been with them for a period of time before becoming eligible for contributions. For example, for a SIMPLE IRA client could require that eligibility requires at least 5000 in compensation paid for at least two prior years. For a SEP IRA, employees must be at least 21 and worked for client at least 3 of the last 5 years and received at least $600 in 2018.