SIMPLE IRA eligibility

Submitted by michael steinebach on Thu, 2022-02-03 19:58

Can a client change eligibility (per the 5305) in any given year? For example, client made a change for eligibility in 2022 – delivered notices to employees prior to November 1, 2021.

Client is thinking about making eligibility changes for 2023. Can the owner do this, so long as they send out notices prior to November 1, 2022?



Submitted by michael steinebach on Thu, 2022-02-03 20:13

Additionally, are temp employees counted as eligible employees (if there are no restrictions or limits on eligibility)?  

Submitted by Alan - IRA critic on Fri, 2022-02-04 03:23

Yes, client can change eligibility from year to year with the annual Notice, but cannot exclude part time employees.

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