SIMPLE-IRA Employer Eligibility Rules
Can an employer with more than 100 employees deduct from hte headcount those employess whoi choose to not participate in the plan so the employer can comply with the 100 employee or less rule?
Can an employer with more than 100 employees deduct from hte headcount those employess whoi choose to not participate in the plan so the employer can comply with the 100 employee or less rule?
Permalink Submitted by Martin Helmer on Fri, 2008-06-13 19:50
No, the employer must count eligible employees who choose not to defer. On the other hand, employees who didn’t earn at least $5,000 during the year prior to the employer’s starting the SIMPLE can be ignored. See Notice 98-4, Question and Answer B-1.