ESTABLISHING A SIMPLE
01.Core Concepts
• Can only be established by small employers • Must be a calendar year plan • Complete and provide participants with either: • Form 5304-SIMPLE, or • Form 5305-SIMPLE • Provide participants with 60-day period to elect deferral • Employer generally cannot maintain another retirement plan • The participant is 100% vested in all contributions to the SIMPLE • Employee and employer • Eligibility • Earned at least $5,000 in any two prior years and expected to earn at least $5,000 in current year