SIMPLE enrollment for new employee

Submitted by Wendy Mommaerts on Thu, 2022-09-08 13:28

We have a SIMPLE Plan that an employee is looking to enroll. The plan has the following requirements:

1) Expected to receive at least 5k in the current year
2) Rec’d 5k during any 1 calendar year preceding the calendar year

If this new employee was hired in 2022, I would assume that he can enter the plan in 2023, if expected to make 5k in 2022 & 2023?

If this new employee was hired in 2021 and has met the requirements, can the employee enroll now or do they have to wait until 11/2 – 12/31?



Submitted by Alan - IRA critic on Thu, 2022-09-08 15:00

  • New employee hired in 2022 will be eligible Jan, 2023 once it is clear that he will make 5k in 2022, and expected to make 5k in 2023.
  • If hired in 2021 and earned 5k in 2021, they should have been eligible for 2022, but if they declined to enroll as of Jan, 2022 and the plan did not include supplemental election periods, they must wait until 2023 per the upcoming annual notice period.


Submitted by William Tuttle on Fri, 2022-09-09 03:41

However, if they would have earned $5K in 2021, expected to earn $5K in 2022 and did not receive an enrollment package by 11/2/2021. This would be a compliance error and must be corrected. Simply enrolling them late would not be sufficient. 



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