What is a simple IRA plan?
- Intended to encourage small business employers to offer retirement coverage to their employees
- Allows for self-employed business owners to contribute both as employee and employer
How can you establish a Simple IRA plan?
- Simple IRA’s are offered by financial institutions that offer any IRA’s or 401(k) plans! You will be given a plan document such as Form 5305 or 5304.
- Provide eligible employees with information regarding the Simple Ira
- Set up Simple IRA for eligible employees – employee will own and control the Simple IRA
What is the deadline?
- A Simple IRA can be established between January 1st and October 1st (if you didn’t previously have a Simple IRA)
- New employers that came into existence after October 1st, you can establish a Simple IRA as soon as administratively feasible