"Steve Quinton" <Steve_Quinton[at]comcast.net> wrote:

- quote -

Call 877-829-5500 for an answer.

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Good day to all,

I am having a difficult time findind the answer to a SIMPLE
question (pardon the pun).

I own an LLC business, and opened an SIMPLE IRA several
years ago for my five employees and myself. I am finding
that most employees rarely stay past two years (nature of
the business). However, when I opened the SIMPLE IRA, I
listed "6 months" as the waiting period before an employee
could qualify to enroll in the SIMPLE IRA. I would like to
increase that time now to the maximum, which I think is two
years. One last piece of information is that I am in the
process of transferring the employer chosen SIMPLE
investment advisor to a new mutual fund company.

My question is whether I can change my Form 5305 SIMPLE
elections to make it more restrictive for new employees? I
have no desire to make it more restrictive for existing
employees, just for employees that I haven't even hired yet.
All existing employees are eligible to enroll, and will
continue to be in the future. I just want to increase the
waiting period to 2 years for new employees. The
representative from the mutual fund company wasn't sure of
the answer.

Please note that I'm also NOT trying to create two
contribution levels for old employees versus new employees.
All employees who are eligible to enroll would receive the
same contribution level notice in November.

Can I "terminate" the old SIMPLE IRA pension plan with the
former brokerage firm, and start a new SIMPLE IRA pension
with the new mutual fund company? If yes, is there any
minimum waiting period before starting a new SIMPLE IRA
pension plan?

Thank you all for your thoughts.

Steve Quinton

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