SIMPLE enrollment for new employee
We have a SIMPLE Plan that an employee is looking to enroll. The plan has the following requirements:
1) Expected to receive at least 5k in the current year
2) Rec’d 5k during any 1 calendar year preceding the calendar year
If this new employee was hired in 2022, I would assume that he can enter the plan in 2023, if expected to make 5k in 2022 & 2023?
If this new employee was hired in 2021 and has met the requirements, can the employee enroll now or do they have to wait until 11/2 – 12/31?
Permalink Submitted by Alan - IRA critic on Thu, 2022-09-08 15:00
Permalink Submitted by William Tuttle on Fri, 2022-09-09 03:41
However, if they would have earned $5K in 2021, expected to earn $5K in 2022 and did not receive an enrollment package by 11/2/2021. This would be a compliance error and must be corrected. Simply enrolling them late would not be sufficient.