Simple IRAs

Submitted by Colton Walker on Fri, 2023-02-03 18:51

I am working with a small business with 4 total employees. Each employee has established a Simple IRA plan through a custodian of their choice and the small business will just send checks for matching contributions to each of the custodians. Can a small business have multiple Simple IRA plans established through multiple custodians??



Submitted by David Mertz on Fri, 2023-02-03 19:29

  • Employers, not employees, establish a SIMPLE IRA *plan*.  However, the employer can establish a SIMPLE IRA plan that does not use a designated financial institution, allowing the employees to set up their own SIMPLE IRA *accounts* to which the employer can deposit employee salary deferrals and required employer contributions.  The employer, not the employee, must make all of these deposits.
  • It might be possible for an employee to set up a SIMPLE IRA account and have that account receive contributions deposited by several different employers having separate SIMPLE IRA plans, including themselves as self-employed, but doing so seems likely to promote confusion and the possibility of errors.  It would complicate the employee’s tracking of the contributions made through the various employers.

Add new comment

Log in or register to post comments