Simple IRA Participation Submitted by Dennis Prout on Mon, 2008-01-28 16:35 Can a Partner or a shareholder in an S-Corp participate in the company’s SIMPLE IRA plan? Flag as spam
Permalink Submitted by Denise Appleby on Mon, 2008-01-28 17:58
Only if they perform services for which they receive W-2 wages. Contributions for an S-Corporation are based on W-2 wages received from the corporation.
Permalink Submitted by Dennis Prout on Mon, 2008-01-28 18:14
Is this also true of a partner in a Partnership? The partner also needs to have W-2 wages to be able to participate in the Simple IRA?
Permalink Submitted by Denise Appleby on Mon, 2008-01-28 18:35
No. If it is partnership, contributions for the partners are based on their net earnings , from their Schedule K-1 received from the partnership.