Whats the deadline for establishing and funding a Savings Incentive Match Plan for Employees (SIMPLE) IRA?
Employers wishing to establish a SIMPLE IRA must give their employees 60 days’ advance notice before deferrals may begin. Employers who want to establish their plan for the current tax year may do so any time from January 1 through October 1. If notice is given after October 1, the plan will be established for the following calendar year. Employers must contribute by the due date for business tax returns, including extensions. Employee pre-tax contributions must be invested as soon as possible after being withheld from the employee’s pay during the year. Employees can generally make the decision to invest a portion of their pre-tax compensation during the plan’s annual 60-day enrollment period.
Related Questions
- Are Savings Incentive Match Plan for Employees (SIMPLE) IRA plan participants allowed to contribute to a Traditional or Roth IRA?
- How much must an employer contribute to the Savings Incentive Match Plan for Employees (SIMPLE) IRA?
- Which employees can participate in a Savings Incentive Match Plan for Employees (SIMPLE) IRA?
