5304-SIMPLE - Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)

Sep 15, 2026

Uploaded by Ben

Form 5304-SIMPLE establishes a SIMPLE IRA plan for the name of employer under Internal Revenue Code section 408(p) and follows the instructions in the form. It defines Article I employee eligibility, including general eligibility or limited eligibility based on current and prior compensation, plus exclusions for certain collectively bargained employees. Article II covers salary reduction elections, election timing rules, and employee termination of elections. Article III describes salary reduction contributions and employer matching or nonelective contributions, including required timing for deposits and limits on contributions.

LanguageEnglish

CategoryForms

FormatPDF

Pages6

Reading Time2 min

AccessFree to download

Article I - Employee Eligibility Requirements

1 - General Eligibility Requirements

2 - Excludable Employees

Article II - Salary Reduction Agreements

1 - Salary Reduction Election

2 - Timing of Salary Reduction Elections

Article III - Contributions

1 - Salary Reduction Contributions

2 - Matching Contributions and Nonelective Contributions

3 - Time and Manner of Contributions

| 5304-SIMPLE
Fom
(Rev.March 2012)
Department of the Treasury
Internal Revenue Service | Savings Incentive Match Plan
for Employees of Small Employers(SIMPLE)—Not
for Use With a Designated Financial Institution | OMB No.1545-1502
Do not file
with the Internal
Revenue Service | | --- | --- | --- | | | | | | | | | establishes the following SIMPLE Name of Employer IRA plan under section 408(p)of the Internal Revenue Code and pursuant to the instructions contained in this form. Article1-Employee Eligibility Requirements (complete applicable box(es)and blanks-see instructions) 1 General Eligibility Requirements.The Employer agrees to pemit salary reduction contributions to be made in each calendar year to theSIMPLE IRA established by each employee who meets the following requirements (select either 1a or 1b): a □Full Eligibility.All employees are eligible. b □Limited Eligibility.Eligibility is limited to employees who are described in both ()and(ii)below: (i)Current compensation.Employees who are reasonably expected to receive at least$ (not to exceed $5,000)for the calendar year. in compensation (ii)Prior compensation.Emplovees who have recejved at least $ in compensation (not to exceed $5,000) calendar year(s)(insert 0,1,or2)preceding the calendar year. # 2 Excludable Employees. □The Employer elects to exclude employees covered under a collective bargaining agreement for which retirement benefits were the subjectof good faith bargaining.Note:This box is deemed checked ifthe Employer maintains a qualified plan covering only such employees. Article II-Salary Reduction Agreements (complete the box and blank,if applicable-see instructions) 1 Salary Reduction Election.An eligible employee may make an election to have hisor her compensation for each pay period reduced.Thetotal amount of the reduction in the employee's compensation for a calendar year cannot exceed the applicable amount for that year. 2 Timing of Salary Reduction Elections a For a calendar year,an eligible employee may make or modify a salary reduction election during the 60-day period immediately precedingJanuary 1 of that year.However,for the year in which the employee becomes eligible to make salary reduction contributions,the period duringwhich the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or theday before. b In addition to the election periods in 2a,eligible employees may make salary reduction elections or modify prior elections .If the Employer choosesthis option,insert a period or periods(for example,semi-annually,quarterly,monthly,or daily)that will apply uniformly to all eligibleemployees. c No salary reduction election may apply to compensation that an employee received,or had a right to immediately receive,before execution ofthe salary reduction election. d An employee may terminate a salary reduction election at any time during the calendar year.□If this box is checked,an employee whoterminates a salary reduction election not in accordance with 2b may not resume salary reduction contributions during the calendar year. Article III-Contributions (complete the blank,if applicable-see instructions) 1 Salary Reduction Contributions.The amount by which the employe agrees to reduce his or her compensation will be contributed by theEmployer to the employee's SIMPLE IRA. 2a Matching Contributions (1)For each calendar year,the Employer will contribute a matching contribution to each eligible employee's SIMPLE IRA equal to theemployee's salary reduction contributions up to a limit of 3%of the employee's compensation for the calendar year. (ii)The Employer may reduce the 3%lim

FAQs

What does Form 5304-SIMPLE establish?

It establishes a SIMPLE IRA plan for employees under IRC section 408(p) according to the form’s instructions.

How do employer rules determine which employees are eligible?

Eligibility can be set as general eligibility for all employees or limited eligibility based on specified current and prior compensation thresholds, and the employer may exclude certain collectively bargained employees.

What are the key deadlines and limits for salary reduction and employer contributions?

Salary reduction elections follow defined 60-day timing rules, matching contributions generally equal employee deferrals up to a 3% limit (with limited ability to reduce that limit), and contributions must be made within the required time periods after month-end and for filing tax return due dates.

Sep 15, 2026

Uploaded by Ben