Simple IRAs

I am working with a small business with 4 total employees. Each employee has established a Simple IRA plan through a custodian of their choice and the small business will just send checks for matching contributions to each of the custodians. Can a small business have multiple Simple IRA plans established through multiple custodians??



  • Employers, not employees, establish a SIMPLE IRA *plan*.  However, the employer can establish a SIMPLE IRA plan that does not use a designated financial institution, allowing the employees to set up their own SIMPLE IRA *accounts* to which the employer can deposit employee salary deferrals and required employer contributions.  The employer, not the employee, must make all of these deposits.
  • It might be possible for an employee to set up a SIMPLE IRA account and have that account receive contributions deposited by several different employers having separate SIMPLE IRA plans, including themselves as self-employed, but doing so seems likely to promote confusion and the possibility of errors.  It would complicate the employee’s tracking of the contributions made through the various employers.


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