SIMPLE IRA PLAN CHECKLIST

Every year it’s important that you review the requirements for operating your Savings Incentive Match Plan for Employees 
of Small Employers (SIMPLE) IRA plan. Use this checklist to help you keep your plan in compliance with many of the 
important rules. Check the box if you can answer “yes” to the question. For additional information (including examples) 
on how to find, fix and avoid each mistake, click on “More .” 

    Has your SIMPLE IRA plan been amended for current law?
    Laws related to retirement plans change frequently. You must update the plan language and its operation to the  
    current law. More 

    Do you have 100 or fewer employees who earned at least $5,000 in compensation for the prior year?
    Businesses with more than 100 employees (including full-time, part-time and seasonal employees) with individual  
    earnings of at least $5,000 yearly can’t establish a SIMPLE IRA plan. More 

    Does your business only sponsor this SIMPLE IRA plan?
    A business with a SIMPLE IRA plan generally can’t sponsor any other retirement plan, such as a 401(k) plan. More 

    Are all eligible employees allowed to participate in the SIMPLE IRA plan?
    An employee who had compensation of at least $5,000 in any two prior years and who’s expected to earn at least  
    $5,000 in the current year is eligible to participate in a SIMPLE IRA plan. More 

    Did you determine each participant’s compensation using the SIMPLE IRA plan document definition?
    Generally, compensation means the sum of wages, tips and other compensation subject to federal income tax  
    withholding and elective salary deferral contributions the participant made to the SIMPLE IRA plan. More 

    Are the correct employer contributions being made to each participant’s SIMPLE IRA?
    The required employer contribution is 2% of the employee’s compensation or a 3% matching contribution. More 

    Are employee elective deferrals being deposited timely?
    You must deposit each employee’s deferrals in their SIMPLE IRA as soon as possible, but no later than 30 days following 
    the month in which the employee would have otherwise received the money. More 

    Are contributions being made to terminated participants who were eligible during the plan year?
    A SIMPLE IRA plan can’t require employment on a particular day, such as the last day of the year, to receive employer 
    contributions. More 

    Have all SIMPLE IRA plan notification requirements been satisfied?
    Requirements include providing employees with the opportunity to make a salary deferral election, informing employees 
    of the ability to select a financial institution for their SIMPLE IRAs, providing employees with a summary description and 
    notifying employees of the employer’s decision whether to make matching or fixed contributions. More 

If you didn’t check all boxes, you may have a mistake in the operation of your plan. This list is only a guide to a more compliant plan, so 
checking all boxes may not mean your plan is 100% compliant. This list doesn’t contain all plan requirements and shouldn’t be used as 
a substitute for a complete plan review. Learn how to correct mistakes without penalty and without notifying the IRS at  
www.irs.gov/fixmyplan. Don’t send this checklist to the IRS.

See www.irs.gov/retirement and click “Types of Retirement Plans” for Fix-It Guides and other resources for SIMPLE IRA and other  
plan types.

    Contact your tax advisor www.irs.gov/retirement                                        Call the IRS at 877-829-5500

           Publication 4284 (Rev. 8-2021) Catalog Number 37994X Department of the Treasury Internal Revenue Service www.irs.gov