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Manchester New Hampshire online Form 4952: What You Should Know
Retirement (Form 5304-SIMPLE) or IRS Form 5304-SIMPLE — SIMPLE IRA (Form 5304-SIMPLE). 1. A SIMPLE Plan must satisfy a simple IRA requirement. The following requirements must be met by an employer The Employer must establish an eligible SIMPLE IRA by filling out and filing the form with its tax return as follows: The Employer must match contributions from each employee to a SIMPLE IRA from their paycheck every pay period. The Employer may make contributions to the SIMPLE IRA by using its payroll deduction and credits at a rate of 5 1/2 percent or more (the IRS may lower this for certain special purposes). If the Employer does not meet the requirements of section 506(c) of the Code, then a plan must meet certain additional requirements. If you are a limited partner of a corporation, you may be eligible to set up your own SIMPLE IRAs under section 4975(b) of the Code. You must file Form 5304-SIMPLE, or your own SIMPLE IRA (as described here) (also known as a “small plan”), for the limited purposes. If your corporation has more than one plan, it may set up some of its SIMPLE IRAs as a small plan (under section 4975(b) of the Code), and some as a SIMPLE IRA. For more information on the limitations on your use of the SIMPLE IRA, read The Employer must meet the requirements of the section 501(c)(3) of the Internal Revenue Code(s). The SIMPLE IRA plan must also include an anti-avoidance provision designed to avoid the abuse of the SIMPLE IRA. The SIMPLE IRA Plan must, subject to the requirements of the Code and this section, be permitted with respect to each plan year for which the employer has established such plan. 2. Participation in the plan. If you are an employee and are eligible to participate in or provide benefits to any SIMPLE IRA, you are an employee of the employer. You are an employee if you have entered into a written agreement with your employer to participate in or provide benefits to the employee's SIMPLE IRA. Generally, the following things are not required in order to establish you as an employee of the employer.
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