SIMPLE IRA – change of provider
Can a Plan Sponsor change SIMPLE IRA providers during a plan year?
What impact (if any) does it have if they used a 5304? or 5305?
Assuming they can change providers – what notification does the sponsor need to provide participants?
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2017-02-10 17:02
No, generally they must make these changes for a 5305 SIMPLE effective January 1 and notify employees no later than 11/2 of the prior year of the change of DFI. With a 5304 SIMPLE employees can change their SIMPLE IRA custodian when they wish, but it is preferable if they limit those changes to the 1/1 date.Notice 98-4 includes the annual notification requirements: https://www.irs.gov/pub/irs-drop/not98-4.pdf