ELIGIBILITY REQUIREMENTS FOR SIMPLE IRAS
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Employees (including self-employed individuals who received
earned income) must be allowed to participate in their employer's SIMPLE plan if
at least $5,000 in compensation from the employer during any 2 years prior to
the current year, and
? Are reasonably expected to receive at least $5,000 in
compensation during the calendar year for which contributions are made.
An employer may exclude from eligibility the following:
whose retirement benefits are covered by a union contract.
? Employees who are nonresident aliens and received no
earned income from sources within the United States.
? Employees who would not have been eligible employees if an
acquisition, disposition, or similar transaction had not occurred during the
The last IRA we will study is another one to which
employers contribute?the simplified employee pension IRA, or