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IRSExempt Organizations & Benefit Plans (5000 Series)

Official form guide

Form 5305-SIM: 5305-SIMPLE

IRS Form 5305‑SIM is the Simple IRA Plan Establishment Agreement. Employers use it to set up a SIMPLE IRA for eligible employees without filing the form with the IRS.

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Form Overview

IRS Form 5305-SIM - 5305-SIMPLE

IRS Form 5305‑SIM is the Simple IRA Plan Establishment Agreement. Employers use it to set up a SIMPLE IRA for eligible employees without filing the form with the IRS.

It captures employer information, plan name, contribution method (matching or nonelective), and the effective date of the plan.

Risk Radar

Scan points
  • 1A single typo in the employer EIN can void the entire SIMPLE IRA.
  • 2Incorrect EIN or employer name
  • 3Choosing a contribution percentage outside IRS limits
  • 4Effective date later than first payroll
  • 5Missing employee signature on acknowledgment

Plain English

This is the paperwork an employer fills out to start a SIMPLE IRA retirement plan for its staff. It tells the IRS the plan’s basic rules and the employer’s contribution choices. No separate filing fee is required.

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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Glossary Terms

effective datemethod

Hover a term to preview the meaning.

What this form is for

  • Use when establishing a new SIMPLE IRA plan for a small business.
  • Do not use for 401(k) or traditional IRA setups.
  • Check Form 5305‑C for a SIMPLE IRA with a designated Roth option.

Form selector

Use this form or another form?

Employer wants a Roth option

Adds Roth contribution field

✓ Verify employee consent

Form 5305‑C

Plan includes both SIMPLE and traditional IRA features

Separate SIMPLE and traditional agreements required

✓ Confirm eligibility rules

Form 5305‑E

Deadline or filing window

The agreement must be executed before the first payroll period in which the SIMPLE IRA is to be applied. If the plan starts mid‑year, the effective date cannot be later than the first payday of that month. No separate IRS filing deadline exists.

  • —Employee salary % | Multiply by 0.03 (or chosen match) | Employer match amount | Ensure not above 3% of compensation

Checklist

What you need before filling it out

1

Employer EIN

IRS EIN confirmation letter · IRS notice or prior tax return

⚠ Misspelled digits✕ High
2

Effective date

Board resolution or payroll calendar · Plan adoption documents

⚠ Date after first payroll✕ Medium
3

Contribution type

Board meeting minutes · Employer policy

⚠ Selecting both match and nonelective✕ Low
4

Employee acknowledgment

Signed receipt copy · Employee file

⚠ Missing signature✕ High

Before you submit

  1. 1Verify employer name and EIN match IRS records.
  2. 2Confirm contribution percentage is within 2%–3% limits.
  3. 3Check that the effective date precedes first payroll.
  4. 4Ensure the correct contribution type box is checked.
  5. 5Sign in the designated employer signature line.
  6. 6Provide a copy to each participating employee.
  7. 7File the original in a secure, retrievable location.

How to file this form

  1. 1Print the latest 5305‑SIM form from IRS.gov.
  2. 2Enter employer information and plan details.
  3. 3Select matching or nonelective contribution method.
  4. 4Enter the effective date and contribution percentages.
  5. 5Sign and date the agreement.
  6. 6Distribute copies to employees for acknowledgment.
  7. 7Store the original in the employer’s retirement‑plan records.

Known limitations

  1. 1Form does not require IRS submission; validation occurs only during an audit.
  2. 2IRS instructions do not specify electronic filing; paper copy is standard.
  3. 3Contribution limits are tied to annual IRS updates; verify the current year’s limits separately.
  4. 4The form does not capture employee salary details; separate payroll records are needed.

Field map

Compact field-by-field guide

6 fields

General Info

2 items

Taxpayer Name and TIN

Full legal name and taxpayer identification number (SSN or EIN).

Requiredtext
Address

Current mailing address.

Requiredtext

Details

2 items

Required Information

Complete all applicable sections of this form according to the official IRS instructions.

Requiredtext
Amount (if applicable)

Enter the relevant dollar amount if this form involves tax calculation.

amount

Certification

1 items

Certification Statement

Read and acknowledge any certifications required by this form.

Requiredcheckbox

Signatures

1 items

Signature

Sign and date. Unsigned forms cannot be processed.

Requiredsignature
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Current form status
IRS

Form 5305‑SIM is currently the standard establishment agreement for SIMPLE IRAs. No newer edition has been released as of the latest IRS publications.

What changed or needs a fresh check

  • Edition date: Verify the form is the 2023 revision or later.
  • Fee: No filing fee required for Form 5305‑SIM.
  • Mailing address: Not applicable unless IRS requests a copy.
  • Signature block: Ensure employer and, if required, authorized officer sign.
  • Electronic copy: Keep a PDF version for backup.

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Quick Facts

The employer (or a designated plan administrator) completes the form for a new SIMPLE IRA plan.
It captures employer information, plan name, contribution method (matching or nonelective), and the effective date of the plan.
The form must be signed and kept on file before the first payroll period in which the SIMPLE IRA becomes effective, typically by the start of the plan year.
The completed agreement is retained by the employer; no mailing to the IRS is required unless requested during an audit.
Errors can invalidate the plan’s tax‑qualified status, causing penalties and loss of tax‑deductible contributions for both employer and employees.
1. Gather employer EIN, address, and plan name. 2. Choose the contribution type (matching or nonelective) and set the percentage limits. 3. Fill in the effective date and sign the agreement. 4. Distribute a copy to each participating employee and keep the original in your records.

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After you file

  1. 1File the original agreement with other plan documents.
  2. 2Maintain a roster of participating employees.
  3. 3Track employer contributions each payroll cycle.
  4. 4Issue annual Form 5498‑SIM to employees and the IRS.
  5. 5Review contribution percentages each year for IRS limit changes.
  6. 6Keep copies of employee acknowledgment letters.
  7. 7Prepare for possible IRS audit by organizing related payroll records.

Sources

  • SRCIRS Instructions for Form 5305‑SIMoutlines purpose and filing requirements.
  • SRCIRS Publication 560retirement plan summary includes SIMPLE IRA rules.
  • SRCIRS websitelatest edition date for Form 5305‑SIM.
  • SRCIRS guidancecontribution limits for SIMPLE IRAs.
  • SRCNot clearly stated in the provided official sourceelectronic filing option.
  • SRCNot clearly stated in the provided official sourceexact audit request process.

Common confusion points

Matching vs. nonelective

Employers often think both can be used together

→ Verify only one method is selected

Effective date vs. plan year start

Date must be before first payroll, not just calendar year

→ Cross‑check payroll schedule

Contribution limit percentage

Some think 5% is allowed

→ IRS caps at 3% for SIMPLE IRAs

Employee signature requirement

Not always required on the form itself

→ Keep separate acknowledgment

Roth option availability

Not on 5305‑SIM

→ Use Form 5305‑C for Roth SIMPLE

Workflow map

Related forms and next steps

4 signals

Before

Form 941 (quarterly payroll) | Sets payroll data used for contributions

Current

5305-SIM

After

Form 1099‑R | Distributes distributions from the SIMPLE IRA

Often used with

Form 5498‑SIM | Reports employee contributions to the IRS

⚠ If something goes wrong

  • Form 5329 | Reports excess contributions or early withdrawals

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Source transparency

Copyright & Licensing - US Government Forms

Independent guide

BrieflyGo links to and explains official public form sources. We are not a government agency, and this page is for general form guidance, not legal advice.

Public DomainCreated by the U.S. federal government. Not subject to copyright (17 USC § 105). Freely copyable without restriction.
Public DomainCreated by the U.S. federal government. Not subject to copyright (17 USC § 105). Freely copyable without restriction.
Public DomainCreated by the U.S. federal government. Not subject to copyright (17 USC § 105). Freely copyable without restriction.
Public DomainCreated by the U.S. federal government. Not subject to copyright (17 USC § 105). Freely copyable without restriction.
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