Must an employer establish a SIMPLE IRA plan on January 1?
An existing employer may establish a SIMPLE IRA plan effective on any date between January 1 and October 1 of a year, provided that the employer (or any predecessor employer) did not previously maintain a SIMPLE IRA plan. This requirement does not apply to a new employer that comes into existence after October 1 of the year the SIMPLE IRA plan is established if the employer establishes the SIMPLE IRA plan as soon as administratively feasible after the employer comes into existence. If an employer (or predecessor employer) previously maintained a SIMPLE IRA plan, the employer may establish a SIMPLE IRA plan effective only on January 1 of a year.