WealthRabbit Support

Who is eligible to establish a SIMPLE IRA plan through WealthRabbit?

Most small businesses and self-employed individuals are eligible to establish a SIMPLE IRA plan. The primary IRS requirement is that the business has 100 or fewer employees who earned at least the IRS minimum compensation amount in the previous year.

Eligible business types typically include:

• Sole proprietors
• Partnerships
• Corporations (including S-corps and C-corps)
• Certain nonprofit and tax-exempt organizations

In addition, the business cannot maintain another qualified retirement plan during the same calendar year. This means that if a company offers a 401(k), pension, or similar plan, it generally cannot also offer a SIMPLE IRA plan for that year.

WealthRabbit guides employers through eligibility questions during onboarding to help ensure the business qualifies before the plan is created. This helps prevent compliance issues and ensures the plan is set up correctly from the start.