In general, the answer is “Yes,” but there are a few exceptions. If you decide to establish a SIMPLE IRA, every eligible employee must be offered a SIMPLE IRA account.
An employee is eligible if they have earned $5,000 in compensation during any two previous years, and are expected to earn $5,000 the current year. If an employee is unwilling to participate, the employer must open up a SIMPLE IRA on behalf of the employee.
Employees excluded from a SIMPLE IRA are those who are not eligible, nonresident aliens, and union employees who are included in a union retirement plan. However, you can establish certain eligibility requirements for a SIMPLE IRA such as period of time worked for the company, and so on, if they do not contradict the minimum requirements.
These will be outlined in a Summary Plan Description, which must be shared with employees by 60 days prior to the start of each plan year (normally by November 2). It is always wise to consult a professional to determine the rules for SIMPLE IRAs, since after you have established these rules, you cannot change them.
A Coverdell ESA is an account which can be used to save for educational expenses. They used to be called Educational IRAs
In contrast to the term “home owner,” home debtor is reserved for those who will seemingly never be able to pay off...
Par value is most often associated with bonds, and refers to the amount that will be returned to the investor at maturity
You might not know it, but the Bond Market is about twice the size of the Stock Market. It's true: in the US and...
Most people think of an abandoned car when abandoned property is mentioned, but it also applies to investment accounts
Keogh plans have minimum eligibility requirements that will probably include most of your employees, but not all of them
The Chicago Mercantile Exchange, now known as the CME group, is the largest derivatives exchange in the world
When foreigners purchase shares of domestic companies to add diversification it is known as Foreign Portfolio Investment
Securities in the market can be analyzed on technical levels or fundamental ones, and it is generally best to take both
Efficient Market Hypothesis states that new information disseminates so quickly it is futile to beat the market portfolio