SIMPLE IRA Eligibility changes

Can an employer change their SIMPLE IRA eligibility requirements once the plan is established? If so, if the employer makes the plan less restrictive (like changes the calendar requirement from 2 years to 1 year) can the employer make the plan more restrictive in a subsequent year (like change back to 2 calendar year requirement).

Where can this info be found in an IRS publication?

Thanks



Yes, the eligibility requirements can be changed annually and announced prior to the 60 day notification period. See attached Notice 98-4 Sections C and G for the administrative options and deadlines. The SIMPLE IRA has been basically unchanged since this Notice:http://www.irs.gov/pub/irs-drop/not98-4.pdf

Add new comment

Log in or register to post comments