Are part-time employees eligible for a SIMPLE IRA?
I have a client who owns a successful small business and has started a SIMPLE IRA for his employees. Good for him! About 30% of his workers are part-time but make more than $5,000 annually for the last 2 years and are expected to again this year. From what I have read, these employees are eligible to participate in the plan since they have met the income requirement. I do not see anything discussing a part-time exclusion. I’ve got this question out to ERISA counsel, but it’s always good to have another source to confirm.
Regards.
Permalink Submitted by Alan - IRA critic on Wed, 2018-07-18 19:55
Client must include these employees. There is no provision to exclude part time workers specifically, although some might fall under the 5,000 annual requirement and be excluded for that reason.