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Official form guide
Form 5305-SIM: 5305-SIMPLE
IRS Form 5305‑SIMPLE is a model plan document that lets small‑business employers establish a SIMPLE IRA, set employee eligibility, and specify matching contributions up to 3% of compensation.
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IRS Form 5305-SIM - 5305-SIMPLE
IRS Form 5305‑SIMPLE is a model plan document that lets small‑business employers establish a SIMPLE IRA, set employee eligibility, and specify matching contributions up to 3% of compensation.
Risk Radar
Scan points- 1Sending Form 5305‑SIMPLE to the IRS instead of retaining it with your records.
- 2Exceeding the 3% compensation limit for matching contributions.
- 3Reducing the matching limit below the minimum 1% when using a reduced rate.
- 4Failing to notify employees of a reduced matching limit before their 60‑day election period.
- 5Omitting the $5,000 compensation threshold for employee eligibility.
Plain English
This form lets a small employer set up a SIMPLE IRA plan for its workers. It defines who can join, how much each employee can contribute from salary, and how the employer must match or make nonelective contributions. The completed form is kept for records, not mailed to the IRS.
Submission Date
- Filing date: 2012-08-06 00:00:00
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when you want to establish a SIMPLE IRA plan that will use a designated financial institution to receive all contributions.
- Do not use it when you want each eligible employee to choose their own financial institution, when you want nonresident alien employees with no U.S. earned income to be eligible, or when you want to establish a SIMPLE 401(k) plan.
- Check Form 5304‑SIMPLE instead when you want employees to select their own financial institution.
Form selector
Use this form or another form?
Employees should select their own financial institution
Allows employee‑chosen institutions instead of a designated one
✓ Verify that no designated institution is named on the plan
Plan includes nonresident alien employees with no U.S. earned income
This alternative permits eligibility of such employees
✓ Confirm employee residency and income source
Employer prefers a plan without a designated financial institution
Enables a SIMPLE IRA without a designated trustee
✓ Ensure the plan document omits a designated institution
Deadline or filing window
Not stated in the official source.
Checklist
What you need before filling it out
Employer name
Employer’s legal name · Form header
Designated financial institution name
Institution’s legal name · Article VII, item 4
Signature of employer
Authorized signature · Signature line on page 2
Nonelective contribution rate
2% of compensation amount · Section b on page 1
Employee eligibility box
Completed eligibility selection (1a or 1b) · Article I, page 1
Before you submit
- 1Verify the form revision reads March 2012
- 2Complete all required boxes on page 1, including employee eligibility
- 3Enter the nonelective contribution rate if applicable
- 4Provide the designated financial institution’s name and address in Article VII
- 5Obtain the employer’s signature and date
- 6Obtain the designated financial institution’s signature and date
- 7Review that no blank required fields remain
- 8Keep the signed original in your records
- 9Do not mail the form to the IRS
How to file this form
- 1Complete pages 1 and 2 with the plan’s operative provisions
- 2Enter the designated financial institution’s name and address
- 3Secure the employer’s signature and date on the signature line
- 4Secure the designated financial institution’s signature and date
- 5Retain the fully executed form in your records as proof of filing
Known limitations
- 1Do not use Form 5305-SIMPLE if you want each eligible employee to choose a financial institution that will initially receive contributions.
- 2If you do not want to choose a designated financial institution, you cannot use this form.
- 3You must not maintain another qualified plan during any part of the calendar year.
- 4The plan must satisfy the 100‑employee limit; failure triggers special rules.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
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Fillable formOpen in Editor->Form 5305‑SIMPLE (Rev. March 2012) is the current edition; the source does not reference a newer revision or a latest‑information page.
What changed or needs a fresh check
- Edition date — confirm the form shows Rev. March 2012
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — confirm signatures of employer and designated financial institution are present
- Form completion — confirm all required boxes on pages 1 and 2 are filled
Quick Facts
Downloads
After you file
- 1Do not file Form 5305-SIMPLE with the IRS.
- 2Keep Form 5305-SIMPLE with your records.
- 3Retain books or records related to the form as long as their contents may become material.
- 4Do not send the form to the IRS address; keep it for your records.
Sources
- SRCForm p.4 — Do not file Form 5305-SIMPLE with the IRS; keep it with your records.
- SRCForm p.4 — Do not use Form 5305-SIMPLE if you want each eligible employee to choose a financial institution that will initially receive contributions.
- SRCForm p.4 — You must not maintain another qualified plan during any part of the calendar year.
- SRCForm p.4 — Failure to satisfy the 100‑employee limit triggers special rules.
- SRCForm p.6 — If you do not want to choose a designated financial institution, you cannot use this form.
- SRCForm p.6 — Retain books or records related to the form as long as their contents may become material.
Common confusion points
Do I need to mail this form to the IRS?
The form looks like a typical IRS filing.
→ Confirm the form states ‘Do not file with the IRS; keep it with your records.’ (Form p.4)
Can I have a SEP or other qualified plan at the same time?
Many small businesses run multiple retirement plans.
→ Verify you are not maintaining any other qualified plan during the calendar year. (Form p.4)
Can employees pick their own bank for contributions?
Employees may expect to choose their institution.
→ Ensure you are not using this form if you want employees to select their own financial institution. (Form p.4)
Do I have to name a designated financial institution on the form?
The field may be optional, causing uncertainty.
→ If you do not want to choose a designated institution, you cannot use this form. (Form p.6)
How long must I keep this form?
Retention periods are often unclear.
→ Keep the form and related records as long as they may become material in tax administration. (Form p.6)
Is there a filing deadline for this form?
Forms usually have due dates.
→ Recognize there is no filing deadline because the form is not filed with the IRS. (Form p.4)
Workflow map
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Questions about IRS Form 5305-SIM
What is IRS Form 5305-SIM used for?
This form lets a small employer set up a SIMPLE IRA plan for its workers. It defines who can join, how much each employee can contribute from salary, and how the employer must match or make nonelective contributions. The completed form is kept for records, not mailed to the IRS.
Who must file IRS Form 5305-SIM?
Employers who wish to establish a SIMPLE IRA plan for their employees must complete IRS Form 5305‑SIMPLE.
What information does IRS Form 5305-SIM require?
The form records employee eligibility, the salary‑reduction election (Article II—Salary Reduction Agreements, item 1), and the employer’s matching (section 2 a) or nonelective (section b) contribution percentages.
Where do I file IRS Form 5305-SIM?
Do not file Form 5305‑SIMPLE with the IRS; keep it with your records.
How do I complete IRS Form 5305-SIM?
First, determine employee eligibility using the limited‑eligibility criteria on page 1. Next, complete the salary‑reduction election in Article II, item 1. Then choose either matching contributions (section 2 a) up to 3% of compensation or nonelective contributions (section b) at 2% and note the applicable amount. Finally, retain the completed form with your records.
What happens if IRS Form 5305-SIM is filed incorrectly?
If the form contains errors, employer contributions may lose their tax deductibility and employee W‑2 reporting can be incorrect, resulting in tax filing problems.
Do I need to mail this form to the IRS?
The form looks like a typical IRS filing. Confirm the form states ‘Do not file with the IRS; keep it with your records.’ (Form p.4)
Can I have a SEP or other qualified plan at the same time?
Many small businesses run multiple retirement plans. Verify you are not maintaining any other qualified plan during the calendar year. (Form p.4)
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