Timing of Contributions to a SIMPLE Plan
We have a plan where the participants are two owners. For numerous years it was just the two and they would always make an annual contribution (no monthly contributions) to their SIMPLE IRA. Now they hired two employees and want to know how they are to make contributions to the employee’s retirement accounts. Do they follow how the owners have been contributing (annually) or do they need to make sure the contributions are made w/in 30 days of deferring from the participants payroll?
If employee contributions are to be monthly, can the owners still make their contributions annually?
Permalink Submitted by Alan - IRA critic on Thu, 2024-01-18 03:28
What is the business entity? As for the employees, Form 5304 or 5305 will state the employee eligibility requirements. If these employees qualify, SIMPLE IRA accounts must be established for them and contributions made from wages as earned.