Don't overlook these!
Updated for 2012
January 1 through October 1:
You can set up a SIMPLE IRA plan effective on any date from January 1st through October 1st of a year, provided you did not previously maintain a SIMPLE IRA plan.
If you did previously maintain a SIMPLE IRA plan, you can set up a SIMPLE IRA plan effective only on January 1st of a year.
A new employer that comes into existence after October 1st of the year can set up SIMPLE IRA plan as soon as administratively feasible.
SIMPLE Plan Effective Date:
A SIMPE-IRA plan cannot have an effective date that is before the date you actually adopt the plan (complete and sign the appropriate plan document).
A SIMPLE IRA must be set up for an employee before the first date by which a contribution is required to be deposited into the employee's IRA account.
After you adopt a SIMPLE IRA plan, you must notify each employee of the following information before the beginning of the election period.
The election period is generally the 60-day period immediately preceding January 1st of a calendar year (November 2nd to December 31st of the preceding calendar year).
However these dates are modified if:
A SIMPLE IRA plan can provide longer periods for permitting employees to enter into salary reduction agreements or to modify prior agreements.
For example, a SIMPLE IRA plan can provide a 90-day election period instead of the 60-day period.
In addition to the 60-day period, a SIMPLE IRA plan can provide quarterly election periods during the 30 days before each calendar quarter, other than the first quarter of each year.
SIMPLE Plans: SIMPLE 401 (k) Plans
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