What is the deadline for establishing a SEP or a SIMPLE-IRA plan?
A. You can establish a SEP for a year as late as the due date (including extensions) of your company’s income tax return for that year. You can establish a SIMPLE-IRA plan effective on any date between January 1 and October 1 of the year for which you make your first contribution. However, if you previously maintained a SIMPLE-IRA plan, you can set up a SIMPLE-IRA plan effective only on January 1 of the year for which you make your first contribution. Also, a SIMPLE-IRA plan cannot have an effective date before you actually adopt the plan.
