If an employer has a SIMPLE Plan and an employee leaves employment (after being a participant), and comes back after 5 years, are they automatically a particpant when they come back? And if so, do they come back in on the next entry date or immediately?

Thank you so much for any advice you can give in this area. I do not do SIMPLE Plans (but the broker is asking).

I'm looking at an adoption agreement and it says employees are eligible to participate if they earned ________ (up to $5,000) in any ___________ (up to 2) prior years.

This "any (up to 2) prior years" language is consistent with the Code, so it sounds like the employee is in. I'm sure a literal reading of the adoption agreement will give the right answer.

Yes; they treated as a rehired participant. Their participation (if they choose) would start as soon as practical (they do not have to wait until following year or next entry period).