The "Only Plan" Requirement for SIMPLEs (Posted May 22, 2002) Technical Tip 73: The following question and answer were from the IRS Q&A Session at the 2000 ASPPA Annual Conference: I am trying to find a solid answer on the "only plan" requirement and when another plan is maintained. If an employer has a SEP and declared a contribution for 1999 that was funded in 2000, I agree with the contention that the employees are considered "active participants" in 2000, since that is when the contribution was added to their accounts. However, I feel that the contribution was "allocated" as of 12/31/99, and as such, would not prevent establishing a SIMPLE IRA for 2000, assuming no 2000 SEP contribution is declared. Response: We agree with your analysis. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.