What are the summary description requirements that trustees/custodians of SIMPLE IRAs have to satisfy each year?
Each year the SIMPLE IRA plan is in effect, the trustee or custodian for the SIMPLE IRA of each eligible employee must provide the employer the summary description for the SIMPLE IRA plan as described in section 408(l)(2)(B).
This requirement may be satisfied by providing the employer a current copy of Form 5304-SIMPLE or Form 5305-SIMPLE (including instructions) and the procedures for withdrawals from SIMPLE IRAs established at your financial organization (including your organization’s name and address). The summary description must be received by the employer in sufficient time to comply with the Employee Notification requirements, which are generally due before the employee’s 60-day election period.
If your organization is not the Designated Financial Institution of the employer, use these documents:
- IRS Form 5304-SIMPLE
- In Article VI, provide your organization’s instructions for requesting a withdrawal or include an attachment to the Form 5304-SIMPLE with these instructions
If your organization is the Designated Financial Institution of the employer, use these documents:
- IRS Form 5305-SIMPLE
- In Article VI, provide your organization’s instructions for requesting a withdrawal or include an attachment to the Form 5305-SIMPLE with these instructions