I have a church that wants to punt and just offer a SIMPLE plan. That's allowed right? As I read the rules for SIMPLE Plans, it seems so.

Thanks,

Fender
www.401ktest.com

Don't see why not. Tax-exempts are specifically permitted to adopt a 401(k) (IRC Section 401(k)(4)(B)(i)), which would include a SIMPLE 401(k). And I don't seen anything prohibiting a tax-exempt from adopting a SIMPLE IRA.

A church can maintain a SIMPLE arrangement if it otherwise meets the "eligible employer" definition (i.e., it had no more than 100 employees who received at least $5,000 of compensation from the employer for the preceding plan year--if it did it would be one big church, of course!) Hope this helps.

I go to a church with 8,000 members and 150 employees. My question was in regard to a smaller church who is getting tired of all the rule changes. They recently heard a rumor which I'm going to bring up in another thread. That was thier motivation for looking into a SIMPLE.

Thank you both for your feedback!