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    3 Replies Latest reply on Sep 15, 2010 10:20 PM by LUCKIEST

    Simple IRA employee eligibility

    JimofSonoma Newbie
      I was going over the retirement benefits with someone we recently hired and had a question about when they would be eligible for our SIMPLE IRA plan. The minimal requirement of any Simple IRA is:

      "Any employee who has received at least $5,000 in compensation during any two years preceding the current calendar year, and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate in the SIMPLE IRA."

      Does this mean that if the new employee earns more than $5000 between now and the end of the year that they will then be eligible starting Jan 1 2011? In the past we had waited a year before employees were eligible for our previous 401K plan, and I thought that was fairly standard, but might be different for the Simple.