SIMPLE Plan – Rehire of an employee

We have a SIMPLE Plan where an employee entered the plan on 1/1/2020. This employee has then left the company 10 months ago and has since been rehired.

Can this employee immediately start contributing to his account? Does he once again have to satisfy the plan requirements of receiving $5000 in any 1 previous calendar year (no $ needed to satisfy for current compensation) and begin contributing on 1/1/2022?



His prior service still counts, so no need to start over.

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