SIMPLE IRA at Edward Jones uses Form 5305-SA: Notification Period starts Nov 2

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krow36
Posts: 1388
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

SIMPLE IRA at Edward Jones uses Form 5305-SA: Notification Period starts Nov 2

Post by krow36 » Mon Oct 30, 2017 12:08 pm

Unlike the IRS Form 5305-SIMPLE IRA and Form 5304-SIMPLE IRA, the Form 5305-SA has no mention of the 60 day Notification Period which starts November 2 every year. To continue using a SIMPLE IRA for the coming calendar year, the employer is required to give the employees a copy of the form before Nov 2. Some BH posters have reported that they have not received the form annually from Edward Jones.

Neither the Custodial Agreement nor the Disclosure Statement that EJ has on their website mentions the 60 day period immediately preceding Notification Period immediately preceding Jan 1. How is Edward Jones able to ignore the 60 day Notification Period?
https://edwardjones.com/images/self ... packet.pdf
Last edited by krow36 on Mon Oct 30, 2017 3:38 pm, edited 1 time in total.

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: SIMPLE IRA at Edward Jones uses Form 5305-SA: Notification Period starts Nov 2

Post by Spirit Rider » Mon Oct 30, 2017 1:51 pm

From Form 5305-SIMPLE which the form for the employer:

A SIMPLE IRA plan may be established by using this Model Form or any other document that satisfies the statutory requirements.

The statutory requirements are that the employer meet the notification and administrative requirements during the 60-day period. There is no requirement for them to notify the participants of what those requirements are. They have indirectly done it anyway by directing participants to IRS Publication 560 for more information

10. Notification Requirements of Employer. Your Employer must provide you with specific information related to your SIMPLE IRA and your Employer’s SIMPLE IRA Plan. Please reference IRS Publication 560 for more information about your Employer’s notification requirements.

I'm not sure what you mean with your last paragraph. There is no 60-day period preceding the notification period. There is just the 60-day notification period preceding the plan year.

krow36
Posts: 1388
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: SIMPLE IRA at Edward Jones uses Form 5305-SA: Notification Period starts Nov 2

Post by krow36 » Mon Oct 30, 2017 3:34 pm

I missed the 10. Notification Requirements of Employer in the Disclosure Statement. Thanks for pointing it out. It seems likely that the employee probably not going to look it up in Pub. 560. Maybe not the employer either?

Fidelity also uses a Form 5305-SA and explains the notification period in Article VIII of their Custodial Agreement.
https://fidelity.com/bin-public/060 ... tagree.pdf

I'll fix that last paragraph in my OP.

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