What is one of the primary administrative requirements for employers with a SIMPLE plan?

One of the primary administrative requirements for employers with a SIMPLE (Savings Incentive Match Plan for Employees) plan is to notify employees of their rights. This involves providing eligible employees with information about the plan, including the benefits it offers, contribution limits, and important timelines, such as the enrollment period. Clear communication ensures that employees understand their options under the plan, which is crucial for encouraging participation and facilitating informed decision-making regarding their retirement savings.

SIMPLE plans are designed to be straightforward and less burdensome for employers compared to other retirement plans. In this context, emphasizing employee communication aligns with the goals of the SIMPLE plan to promote savings and retirement readiness among employees.