SIMPLE IRA set up mid year - eligible employee terminated

[maciver]

Maryland
I will be setting up a SIMPLE IRA with employee matched contributions starting September 1st. However, 1 eligible employee terminated early in May. When I send out the 60 day notice to elect salary deductions how will that apply to her? She won't have any more paychecks.

Thanks for your help.

 

[LdiJ]

Maryland
I will be setting up a SIMPLE IRA with employee matched contributions starting September 1st. However, 1 eligible employee terminated early in May. When I send out the 60 day notice to elect salary deductions how will that apply to her? She won't have any more paychecks.

Thanks for your help.

Why do you believe that a terminated employee would still be an eligible employee?

 

[cbg]

Wait a minute here.

She terminated in May. The benefit is not started till September. Why on EARTH would you imagine she is eligible for a benefit that didn't begin until four months after she left?

Don't make things harder on yourself than you have to. The benefit does not apply to her; she is not an employee any more.