Establishing a Simple IRA

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