Simple IRA Participation
What are the participation limitations that can be imposed by an employer. OR… Can an employer exclude a full time employee for 2 years?
What are the participation limitations that can be imposed by an employer. OR… Can an employer exclude a full time employee for 2 years?
Permalink Submitted by Herb Montgomery on Fri, 2008-06-13 18:59
The employer can exclude an employee if they have earned less than $5,000 in each of the two previous calendar years.
Permalink Submitted by Denise Appleby on Mon, 2008-06-16 08:45
[quote=”herb.montgomeryfinancial@”]The employer can exclude an employee if they have earned less than $5,000 in each of the two previous calendar years.[/quote]
Some minor rewording… The employer must include employees who received at least $5,000 in compensation from the employer during [u][b]any [/b][/u]two preceding years and who are reasonably expected to receive at least $5,000 in compensation during the calendar year .
Employees who do not meet this requirement can be excluded.
Certain nonresident aliens and employees covered under a collective bargaining agreement can also be excluded.