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Which employees must be included in a SIMPLE IRA plan?

The IRS requires that employers include all eligible employees in the SIMPLE IRA plan. Generally, an employee is considered eligible if they earned at least the IRS minimum compensation amount during any two prior years and are reasonably expected to earn that amount in the current year.

Employers may choose to use less restrictive requirements, such as allowing participation immediately upon hire, but they cannot exclude employees who meet IRS standards.

Including eligible employees fairly is an important part of maintaining compliance. WealthRabbit helps employers track eligibility and ensure employees are offered participation as required.