SIMPLE IRA PLAN CHECKLISTSIMPLE IRA PLAN CHECKLIST

This checklist isn't a complete description of all plan                     For Business Owner’s Use 
requirements, and shouldn'tbe used as a substitute                          (DO NOT SEND THIS WORKSHEET TO THE IRS) 
for a complete plan review.

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. For additional information (including examples) on how to find, fix and avoid each 
mistake, click on "(More)." See www.irs.gov/retirement and click on "Types of Retirement Plans" for Fix-It Guides and 
other resources for SIMPLE IRA and other plan types.

1. Has your SIMPLE IRA plan been                                  6. Are the correct employer 
amended for current law?                                          contributions being made to each 
                                                                  participant's SIMPLE IRA?
Laws related to retirement plans change frequently. You must 
update the plan language and its operation to the current law.    The required employer contribution is either 2% of the  
(More)                                                            employee's compensation or a 3% matching contribution. 
                                                                  (More)
2. Do you have 100 or fewer 
employees who earned at least $5,000                              7. Are employee elective deferrals 
in compensation for the prior year?                               being deposited timely?

Businesses with more than 100 employees (including full-time,     You must deposit each employee's deferrals in the IRA as soon 
part-time and seasonal employees) with individual earnings of     as possible, but no later than 30 days following the month in 
at least $5,000 yearly can't establish a SIMPLE IRA plan.         which the employee would have otherwise received the money.  
(More)                                                            (More)

3. Does your business only sponsor                                8. Are contributions being made to 
this SIMPLE IRA plan?                                             terminated participants who were 
                                                                  eligible during the plan year?
A business with a SIMPLE IRA plan generally can't sponsor any 
other retirement plan, such as a 401(k) plan.                     A SIMPLE IRA plan can't require employment on a particular 
(More)                                                            day, such as the last day of the year, to receive employer 
                                                                  contributions. 
                                                                  (More)
4. Are all eligible employees allowed 
to participate in the SIMPLE IRA plan?
                                                                  9. Have all SIMPLE IRA plan 
An employee who had compensation of at least $5,000 in any        notification requirements been 
two prior years and who's expected to earn at least $5,000 in     satisfied?
the current year is eligible to participate in a SIMPLE IRA plan. 
(More)                                                            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, 
5. Are you determining each eligible                              providing employees with a summary description and notifying 
employee's compensation using the                                 employees of the employer's decision whether to make 
definition in your SIMPLE IRA plan                                matching or nonelective contributions.   
document?  
                                                                  (More)
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)

If you answered “No” to any of the above questions, you may have a mistake in the operation of your 
SIMPLE IRA plan.  This list is only a guide to a more compliant plan, so answering "Yes" to each question may not mean 
your plan is 100% compliant. Many mistakes can be corrected easily, without penalty and without notifying the IRS.                  

■ contact your tax advisor                      ■ www.irs.gov/retirement               ■ call the IRS  at 877-829-5500 

       Publication 4284 (Rev. 8-2018)  Catalog Number 37994X  Department of the Treasury  Internal Revenue Service  www.irs.gov