SIMPLE IRA for Start Up Company

Hello,

I understtand that to be eligible to contriubte to a SIMPLE IRA, there must be $5,000 of compensation in two of the previous years. What if the company is a strart up as of 1/1? Can a SIMPLE be set up and can money be contributed to it, or do they have to wait until 2 years go by? Thank you for your help.



Yes. You can use LESS restrictive requirements than that, but not more restrictive requirements. That allows start ups to use a SIMPLE IRA plan.

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