Simple IRA Account for Non-Cooperating Employee
I have heard it mentioned that the employer would have to open an account for the employee if they refused to open an account. I have a client who is making 2% non-elective contributions, but has several employees who refuse to open a Simple IRA account. So exactly how is this handled? Do they just keep funds equal to the contribution segregated in another account? I’m perplexed by the employee’s unwillingness to open an account, but nevertheless I know the employer has an obligation to make the 2% non-elective contribution.
Permalink Submitted by Alan - IRA critic on Fri, 2018-10-26 00:10
Hopefully, this is for 2018 contributions, because the deadline for 2017 has now passed. But the contribution must be made, and the employer will have to open an account for each eligible employee to receive the contribution. Hopefully, the client is making the annual notification on time, and for 2019 that notification is due in just one week.