SIMPLE IRA & Control Group

Submitted by Charlie Pesiridis on Tue, 2022-10-11 14:08

Hi: I have a current client who is a single owner of a business who participates in an existing SIMPLE IRA plan.
The current client started a new business as a co-owner/partner where there isn’t a SIMPLE IRA plan offered.
The employees of this new business would like to participate in the SIMPLE IRA plan that already exists with the other company.
Can the employees of the new business/company under a different TIN# than the company with the SIMPLE IRA plan still enroll in the existing SIMPLE IRA or have to create a new one? Thx.



Submitted by William Tuttle on Wed, 2022-10-12 03:34

  • These two businesses and ownership interests are not a parent-subsidy or a brohter-sister controlled group.
  • The two businesses must have separate employer retirement plans.
  • Since there are little to no administrative fees in SIMPLE IRA plans from many low cost brokerages. There would be little to no benefit to have one plan anyway.
  • Just use the same custodian to adopt a new SIMPLE IRA at the second business.

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