Simple IRA – Multiple related companies ownership
I have an employer that is operating a Simple IRA plan. He is also primary owner of another secondary company that is affiliated with the main employer. They are offering the Simple IRA to all employees.
From an ownership standpoint, how is that determined?
In the past, they have all operated the Simple IRA under the main company A, just offering to all employees including affiliated company B. IS that ok?
Or should they operate the Simple IRA under each separate company name.
Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2024-10-14 16:19
They are required to include all employees of closely related employers under the SIMPLE IRA, so this is required. On their 5304 or 5305 SIMPLE form, they might list both company names, but if there happened to be several of them, there would not be enough room and then they should name the largest employer and add “et al” to that.