Form 5305-SIMPLE

Form 5305-SIMPLE

A model form published by the IRS that is used to set up the terms of a SIMPLE plan. An employer uses a separate Form 5305-SIMPLE for each employee. It is kept for the employer's own records. It is not filed with the IRS.
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To implement this plan the employer can use Form 5304-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)--Not for Use With a Designated Financial Institution, or Form 5305-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)--for Use With a Designated Financial Institution.
A prototype plan can be established by completing a Form 5305-SIMPLE (Savings Incentive Match Plan for Employees of Small Employers [SIMPLE]--for Use with a Designated Financial Institution) if the employer will choose the trustee or financial institution, or a Form 5304-SIMPLE (Savings Incentive Match Plan for Employees of Sinai!
If your company qualifies, it can use IRS Form 5304-SIMPLE or Form 5305-SIMPLE to create the plan.
The SIMPLE IRA is considered a replacement for the SAR-SEP IRA and must be established by an employer for employees using either Form 5304-SIMPLE or Form 5305-SIMPLE.
The employer merely completes Form 5304-SIMPLE or Form 5305-SIMPLE. Copies of these forms can be found at: http://pro.nuco.com/booksupplements/TTEB.
Like a SEP, a SIMPLE IRA can be adopted by executing an IRS form (Form 5305-SIMPLE) or a prototype SIMPLE IRA furnished by a financial institution.