Managing Your SIMPLE IRA: How to Run Employer Contributions

Ensuring timely and accurate contributions to your employees' SIMPLE IRAs is essential for compliance and financial security. With WealthRabbit’s Employer Portal, managing contributions is simple and streamlined.

This guide walks you through how to set up, adjust, and track employee contributions to keep your plan running smoothly.

How to Manage Contributions in Your Employer Portal

In your Employer Portal, you'll find a Contributions section designed to help you easily manage and track employee contributions. This page allows you to:

• View missed contributions or errors that may need correction.

• Change your contribution cycle to fit your payroll schedule.

• Make off-cycle contributions when necessary.

These features provide full control over your SIMPLE IRA contributions, ensuring that your employees receive their retirement savings on time and without errors.

Setting Up Your Contribution Cycle

One of the first steps in managing your SIMPLE IRA is defining how often contributions should be made. You can set this up in the Edit Contribution Cycle section, selecting from the following payment frequencies:

• Weekly

• Biweekly

• Semi-monthly

• Monthly

• Quarterly

When Should You Make Contributions?

The IRS requires that Simple IRA contributions be made no later than the last day of the following month the deferral from payroll was made. For example, if a payroll was run on January 2nd and there were Simple IRA deferrals on that payroll, then the deposit must be made by the last day of February.

At WealthRabbit, we give you two primary contribution timing options:

1. Every pay cycle (recommended) – Ensures employees receive timely contributions aligned with their pay schedule. This is recommended for cash flow purposes.
2. Once a month – A more consolidated approach, though not as immediate. This will comply with IRS mandates.

If you're unsure about the best contribution schedule, WealthRabbit provides recommendations to guide you through the setup process.

Making Off-Cycle Contributions

Sometimes, businesses may need to make adjustments or additional contributions outside of their regular schedule. WealthRabbit allows you to make off-cycle contributions, which can be useful for:

• Correcting missed contributions

• Making special employer contributions

• Adjusting for payroll changes or bonuses

This flexibility ensures that you can stay compliant and avoid penalties while keeping your employees' retirement savings on track.

Tracking Contributions: Viewing Your History

To keep everything transparent and well-documented, the Contribution History section allows you to:

• View past contributions, including employer and employee amounts.

• Verify payments to ensure compliance.

• Identify any discrepancies and correct errors quickly.

This feature gives you a clear picture of your company’s retirement plan funding, helping you stay organized and avoid compliance issues.

Common Questions About SIMPLE IRA Contributions

What happens if I miss a contribution?

• No worries! With WealthRabbit's off-cycle contribution feature, you can quickly correct any missed contributions. Our system helps you stay on track and avoid potential penalties by making timely adjustments simple.

Can I change contribution amounts later?

• WealthRabbit makes managing contributions easy. While employers must follow the contribution rules set at the beginning of the plan year, our intuitive employer portal allows for seamless payroll adjustments and employee contribution updates.

How do I ensure compliance?

• With WealthRabbit, compliance is effortless. Our platform automates payroll deductions, tracks contributions in real time, and provides alerts to help you stay on top of IRS regulations. Plus, our Contribution History feature allows you to review past payments and make necessary updates with ease.

Streamline SIMPLE IRA Management with WealthRabbit

Managing SIMPLE IRA contributions doesn't have to be complicated. With WealthRabbit's fully digital platform, you can:

• Automate contributions and avoid missed payments.

• Adjust payment schedules based on your business needs.

• Track and verify contributions with ease.

Need assistance? Contact our support team for expert guidance.