Can contributions made under a SIMPLE plan be made to any type of IRA?
A. A-2: Contributions under a SIMPLE plan may only be made to a SIMPLE IRA, not to any other type of IRA. A SIMPLE IRA is an individual retirement account described in section 408(a), or an individual retirement annuity described in section 408(b), to which the only contributions that can be made are contributions under a SIMPLE plan and rollovers or transfers from another SIMPLE IRA. Q. A-3: Can a SIMPLE plan be maintained on a fiscal year basis? A. A-3: A SIMPLE plan may only be maintained on a calendar year basis. Thus, for example, employer eligibility to establish a SIMPLE plan (see Q&As B-1 through B-5) and SIMPLE plan contributions (see Q&As D-1 through D-6) are determined on a calendar year basis. B. EMPLOYERS THAT CAN ESTABLISH SIMPLE PLANS Q. B-1: Can any employer establish a SIMPLE plan? A. B-1: SIMPLE plans may be established only by employers that had no more than 100 employees who earned $5,000 or more in compensation during the preceding calendar year (“100-employee limi
