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If I Want to Establish a SIMPLE IRA, Do I Have to Establish One For All Owners of My Business?

Only employees must be included in SIMPLE IRAs. The IRS has about 20 criteria for assessing whether an employee-employer relationship exists.

Silent partners and other owners who do not participate in the business or draw wages do not need to be included in the plan. You have to offer SIMPLE IRAs to all of your employees who received at least $5,000 in compensation in the preceding year two years. Unionized employees can be excluded.

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