Can an employer make contributions under a SIMPLE IRA plan for a calendar year if it maintains another qualified plan?
Generally, an employer cannot make contributions under a SIMPLE IRA plan for a calendar year if the employer, or a predecessor employer, maintains a qualified plan (other than the SIMPLE IRA plan) under which any of its employees receives an allocation of contributions in a defined contribution plan or receives an accrual in a defined benefit plan for any plan year beginning or ending within that calendar year. In applying these rules, transfers, rollovers or forfeitures are disregarded, except to the extent forfeitures replace otherwise required contributions. “Qualified plan” means a plan, contract, pension or trust described in section 219(g)(5) and includes a plan qualified under section 401(a), a qualified annuity plan described in section 403(a), an annuity contract described in section 403(b), a plan established for employees of a State, a political subdivision or by an agency or instrumentality of any State or political subdivision (other than an eligible deferred compensation
Related Questions
- May an employee participate in a SIMPLE IRA plan if he or she also participates in a plan of a different employer for the same year?
- Can an employer make contributions under a SIMPLE IRA plan for a calendar year if it maintains another qualified plan?
- When must an employer make matching and nonelective contributions under a SIMPLE IRA plan?
