A. E-2: There is nothing to prevent a SIMPLE IRA plan from imposing additional or longer time limits for the conclusion of wage reduction agreements or the modification of previous agreements for workers. For example, a SIMPLE IRA plan can provide an election period of 90 days instead of the 60-day period described in Q-A E-1. In addition to the 60-day period described in Q-A E-1, a SIMPLE IRA plan can provide quarterly election periods for the 30 days prior to each quarter. If you implement your IRA SIMPLE plan with either Form 5304-SIMPLE or Form 5305-SIMPLE, you can provide each employee with a copy of the signed forms to meet the notification requirements. F. G-2: Is it possible to provide notifications of a reduced contribution (described in Q-A D-5) and an ineligible contribution instead of an appropriate contribution (described in Q-A-6) at the same time as communication on the possibility of a worker entering into a salary reduction agreement and summary description? An IRA adoption agreement must be accompanied by a background document explaining how a plan will work. A. E-1: During the 60-day period immediately prior to January 1 of a calendar year (i.e., November 2 to December 31 of the previous calendar year), an authorized worker must have the right to enter into a salary reduction agreement for the calendar year or to amend a prior agreement (including the reduction of the amount to $0). For the year in which the worker is entitled to salary reduction contributions, the period during which the employee can enter into a salary reduction contract or amend a prior agreement is a 60-day period, including either the date on which the worker becomes eligible or the day before that date. For example, when an employer implements a simple IRA plan effective July 1, 1997, any eligible worker is allowed to reduce their contributions on that date and the 60-day period must begin no later than July 1 and not end until June 30, 1997. (1) The other qualified plan maintained by the employer only includes workers covered in paragraph 1 of the C-1 Q-A (i.e.

workers covered by a collective agreement for which pension benefits have been subject in good faith) and the simple IRA plan excludes these workers. An account holder should enter into an IRA adoption agreement for traditional and roth-IRA, as well as training savings accounts and health savings accounts (HSA). Such an agreement is also reached for qualified plans, simple IRAS, IRAS MS and a large number of employer-sponsored retirement plans. The Internal Revenue Service (IRS) provides information guides and forms for the introduction of the Ira and the documentation of the plan in the form 5305. Once T. Rowe Price has signed and returned your IRS 5305 SIMPLE form (or after using Form IRS 5304-SIMPLE), print copies of the Model to Eligible Employees Notification (pages 3 to 5 of the IRS form) and distribute them to staff with the subscriber account form and the filing disclosure and filing contract. On October 31, 1996, the Internal Revenue Service issued Form 5305-SIMPLE, a standard form that can be used by an employer to establish a SIMPLE IRA plan with a specific financial institution, and on December 30, 1996, 5304-SIMPLE issued a standard form that can be used by an employer to develop a SIMPLE IRA plan without using a specific financial organization. Communication 97-6 contained instructions to amend Form 5305-SIMPLE for an employer who did not wish to use a specific financial institution but wanted to use a service-approved model form to develop a SIMPLE IRA plan.

Form 5304-SIMPLE is now available for this purpose. This notice amends and replaces Communication 97-6, 1997-2 I.R.B. 26, which relates to the SIMPLES IRA plans described in Section 408 (p) of the Revenue Code. The questions and answers contained in this communication reflect the technical corrections made by the Taxpayer Relief Act of 1997, Pub.