What reporting obligation does a trustee of a SIMPLE have with the Secretary of the Treasury?

The trustee of a SIMPLE (Savings Incentive Match Plan for Employees) IRA has an annual reporting obligation to the Secretary of the Treasury. This requirement is in place to ensure compliance with relevant regulations and to provide transparency regarding the plan's operations and financial condition. The annual report allows the treasury to monitor the adherence to the guidelines established for SIMPLE IRAs, which were designed to encourage small businesses to offer retirement plans to their employees.

The focus on an annual report rather than more frequent reporting, such as quarterly or monthly updates, reflects the nature of SIMPLE plans, which are generally simpler and less administratively burdensome than other retirement plans. By requiring just an annual report, the regulations strike a balance between oversight and flexibility for employers and their employees.

It's important to recognize that other reporting frequencies would impose additional burdens on trustees, which is not aligned with the goal of encouraging small businesses to set up retirement plans. That is why the annual report is the standard requirement in this context.