SIMPLE IRA Eligibility
Question
Once a participant satisfies SIMPLE eligibility are they always in? Or do they need to re-satisfy eligibility requirements?
For example,
A full time employee left then comes back as a part timer – is the employee eligible to defer and is the Employer required to make a contribution/match?
Permalink Submitted by Alan - IRA critic on Wed, 2019-04-10 22:08
Each employee is subject to the compensation requirements for each year, and could either fail to qualify in a future year due to higher compensation (but not over 5,000) required by the employer or due to falling compensation of the employee. Therefore, an employee could become ineligible who was formerly eligible.