Is it Still Possible to Establish a SIMPLE-IRA Plan for 2016?
Yes, if the sponsoring business has never sponsored a SIMPLE-IRA Plan and if the business has not made any contributions for 2016 to another type of retirement plan (e.g. profit sharing plan or SEP).
A person or business can set up a SIMPLE-IRA plan effective on any date between January 1 and October 1 of a year, provided it did not previously maintain a SIMPLE-IRA plan. This requirement does not apply if there is a new employer that comes into existence after October 1 of the year the SIMPLE-IRA plan is set up and the new business sets up a SIMPLE-IRA plan as soon as administratively feasible after it comes into existence. If a business previously maintained a SIMPLE-IRA Plan, it can set up a SIMPLE-IRA plan effective only on January 1 of a year. A SIMPLE-IRA plan cannot have an effective date that is before the date you actually adopt the plan.