Simple IRA 5305 and notice to employee clarification

Submitted by michael steinebach on Wed, 2018-01-31 16:39

A few questions:

In a Simple IRA plan, does the client (the business owner) need to fill out a 5305 every year if there are no changes to the plan?

Do the participants need to sign the “model notification to employees” every year? Or does providing them with the 5305 suffice?

Finally, does the plan date have to be January 1st? Or can it fall anywhere between January 1 and October 1?



Submitted by KATHERINE ADAMS on Tue, 2023-01-31 22:40

Does not look like these questions above were answered and I’d like to see the answers as well. Thank you A few questions:In a Simple IRA plan, does the client (the business owner) need to fill out a 5305 every year if there are no changes to the plan?Do the participants need to sign the “model notification to employees” every year? Or does providing them with the 5305 suffice?Finally, does the plan date have to be January 1st? Or can it fall anywhere between January 1 and October 1?

Submitted by Alan - IRA critic on Wed, 2023-02-01 00:21

  • See G-1 on p 11 of the following link to Notice 98-4:
  • not98-4.pdf (irs.gov)
  • Less chance of an error or employee complaints or claims if p 1-2 are provided to each employee with the Model Notification prior to the annual notification due prior to 11/2
  • These are calendar year plans, with an exception for a newly eligible employer opening their first SIMPLE IRA. 

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