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SCB

Jan 23 2007, 11:49 AM

I had an employee who was terminated in July. I am getting ready to send in the employer's 2% contribution for which she is eligible. However, she has terminated her account with the broker where the money is to be invested. What am I supposed to do with her money?

Gary Lesser

Jan 23 2007, 01:33 PM

Notice 98-4 provides that the contribution must be made to a SIMPLE-IRA; fortunately, it also provides that:

QUOTE

Q. G-4: What if an eligible employee is unwilling or unable to establish a SIMPLE IRA?

A. G-4: If an eligible employee who is entitled to a contribution under a SIMPLE IRA Plan is unwilling or unable to establish a SIMPLE IRA with any financial institution prior to the date on which the contribution is required to be made to the SIMPLE IRA of the employee under Q&A G-5 or G-6, an employer may execute the necessary documents to establish a SIMPLE IRA on the employee's behalf with a financial institution selected by the employer.

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