SIMPLE IRA Plan — Articles

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SECURE 2.0 Expands Roth Options for SEP and SIMPLE Plans

Before SECURE 2.0’s enactment, SEP and SIMPLE IRA plan contributions had to be made as pre-tax contributions, but now employers may allow employees to elect to have contributions into a SEP or SIMPLE IRA made as Roth contributions.

IRA, News BriefAscensusMarch 21, 2024SEP Plan, SIMPLE IRA Plan, Withholding, Roth IRA, IRA, IRS, Business Insights

Mid-Year Termination of SIMPLE IRA

Employers may now terminate a SIMPLE IRA and replace it with a safe harbor plan.

IRAAscensusMarch 21, 2024SIMPLE IRA Plan, IRA, Business Insights

Contribution Limits Increased for SIMPLE Plans

Employers that sponsor a SIMPLE plan may allow increased salary deferral limits for their employees, starting in tax year 2024.

IRAAscensusMarch 21, 2024SIMPLE IRA Plan, IRA, Business Insights, Contribution, Compliance & Operations

IRS Offers Details on SECURE Act 2.0 Roth SEP and SIMPLE Provisions

Given the many changes to the retirement landscape brought about by the SECURE 2.0 Act legislation, it would be difficult to identify any one provision that has the greatest potential to impact retirement savers. But, certainly, one strong candidate would be the new ability to make Roth contributions to simplified employee pension (SEP) and savings incentive match plans of small employers (SIMPLE) IRA retirement plans.

IRAAscensusFebruary 15, 2024Compliance & Operations, SEP Plan, SIMPLE IRA Plan, Roth IRA, Retirement Plan, Regulations

IRS Releases Guidance on SECURE 2.0 Provisions

The Internal Revenue Service (IRS) has released Notice 2024-02, which provides guidance in a question and answer format regarding several provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0). This article summarizes the guidance contained in Notice 2024-02.

IRS Issues SECURE 2.0 Guidance

On December 20, 2023, the IRS released Notice 2024-2, Miscellaneous Changes Under the SECURE 2.0 Act of 2022. The so-called “Grab Bag” Notice provides guidance to multiple provisions of the SECURE 2.0 Act of 2022.

Employer Plan, IRA, News BriefAscensusDecember 21, 2023IRA, SEP Plan, SIMPLE IRA Plan, IRS, Retirement Plan, Qualified Retirement Plan

IRS Issues Proposed Long-Term, Part-Time Regulations

The Internal Revenue Service (IRS) has released a proposed regulation reflecting statutory changes related to long-term, part-time (LTPT) employees made by the SECURE Act of 2019 (SECURE Act) and the SECURE 2.0 Act of 2022 (SECURE 2.0).

IRS Releases 2024 Cost-of-Living Adjusted Retirement Savings Limitations

The IRS has issued Notice 2023-75, which contains the 2024 cost-of-living increases for qualified retirement plan dollar limitations on benefits and contributions under the Internal Revenue Code (IRC).

Take the Fear Out of IRA Portability

Halloween is just around the corner, but what may strike fear into the hearts of your staff may be greater than one night of goblins and ghouls. However, moving IRA assets from one IRA to another, or even to a different type of IRA, doesn’t have to be scary.

IRAAscensusOctober 19, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, Traditional IRA, Roth IRA, Regulations, Rollover

RMD Rules When an IRA Owner Dies

If you’re uncertain about the RMD rules, you’re not alone. The rules can be complicated. And you may find that many beneficiaries don’t understand the rules either.

IRS Issues Interim Guidance on Plan Corrections Under SECURE 2.0 Act

The SECURE 2.0 Act of 2022 (SECURE 2.0) provisions affecting the Employee Plans Compliance Resolution System (EPCRS) support the IRS trend toward shifting certain types of retirement account corrections to the Self Correction Program (SCP).

SECURE 2.0 Provides New Ways to Take Penalty-Free Distributions

The SECURE 2.0 Act provides more ways for individuals to access their retirement savings and creates new exceptions to the 10 percent early distribution penalty tax.

IRS Provides EPCRS Guidance Related to SECURE 2.0

The IRS in late May 2023 issued Notice 2023-43 to address questions and provide interim guidance related to Section 305 of SECURE 2.0.

IRA, News BriefAscensusJune 15, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, IRS

Our Client Says That We’ve Incorrectly Reported His SEP Contribution—What Do We Do?

There can be confusion surrounding how to report SEP contributions. Our ERISA consultants receive frequent calls about this topic on our 800 Consulting lines. A common scenario involves a self-employed business owner receiving a Form 5498, IRA Contribution Information, and noticing that the SEP contribution that he made wasn’t reported for the tax year in which he reported the contribution on his federal tax return.

IRAAscensusMay 18, 2023SEP Plan, SIMPLE IRA Plan, Reporting, Regulations, Contribution

Your SEP and SIMPLE Questions Answered

A sole proprietor whose aim is maximizing her contribution may find a SEP plan more appealing than a SIMPLE IRA. But as her business grows and she starts hiring employees, she might decide to switch to a SIMPLE IRA, which allows for employee deferrals instead of solely relying on employer contributions.

expert, IRAAscensusMay 18, 2023Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan, Contribution, Traditional IRA

Be(A)ware of Roth IRA and Roth Employer Plan Differences

Although Roth IRAs and designated Roth accounts have a few similarities, such as the name “Roth” and the objective of generating tax-free earnings, there are also some significant differences between the two accounts.

SECURE 2.0 Brings Opportunities—and Some Challenges

The ink was barely dry on the President’s signature when the calls started coming in about the SECURE 2.0 Act. And as you might expect, the questions weren’t all about what new provisions this legislation contained.

IRA, Employer PlanAscensusFebruary 16, 2023Compliance & Operations, IRA, Roth IRA, SIMPLE IRA Plan, Regulations