Skip to content
Cadence OneFive° Internal Handbook

SIMPLE IRA Administration

Internal procedures for administering the Cadence OneFive SIMPLE IRA plan.

Annual Calendar

Section titled “Annual Calendar”
Deadline Task
October 31 Distribute annual notice to all eligible employees
November 2 - December 31 Employee election period for following year
30 days after month end Submit employee salary reduction contributions to Ascensus
End of each quarter Process employer 2% contributions with last payroll
Tax filing deadline Ensure contributions are made for prior year

Annual Notice (Before October 31)

Section titled “Annual Notice (Before October 31)”

Each year, distribute the following to all eligible employees:

  1. Completed Form 5305-SIMPLE (pages 1-2) - serves as the Summary Plan Description
  2. Model Notification to Eligible Employees (page 3 of Form 5305-SIMPLE)
  3. Instructions for moving assets - informs employees of transfer rights

How to Distribute

Section titled “How to Distribute”
  1. Post announcement in #everyone Discord channel
  2. Email notification to all eligible employees
  3. Save copy of notification to Google Drive: GrowthOps > HR and Benefits > Retirement Benefits > Ascensus SIMPLE IRA [Year]

What the Notice Must Include

Section titled “What the Notice Must Include”
  • Employee’s opportunity to make or change salary reduction contributions
  • Employer contribution type: 2% nonelective (not matching)
  • Minimum compensation threshold: $5,000
  • Election period dates

Penalty for non-compliance: $50/day until notification is provided (waived for reasonable cause).

Employee Enrollment

Section titled “Employee Enrollment”

New Eligible Employees

Section titled “New Eligible Employees”
  1. Send Employee an invite to Ascensus after the completion of their onboarding - employee must sign up via the invite link.
  2. Employee has 60 days from eligibility date to set up salary reduction contributions
  3. Add employee to quarterly contribution list

Processing Salary Reduction Elections

Section titled “Processing Salary Reduction Elections”

When an employee submits a Salary Reduction Agreement:

  1. Verify form is complete and signed
  2. Confirm start date is before the applicable pay date
  3. In Justworks, go to the employee’s profile and add a manual deduction:
    • Deduction Type: 408(p) SIMPLE (pretax)
    • Amount/Percent: Per employee’s Salary Reduction Agreement
    • Frequency: Per employee’s election (e.g., “First & second pay periods” for both paychecks)
    • Start Date: Per employee’s Salary Reduction Agreement
  4. Update automatic transfer of the election amount from the company operating account to the IRA escrow account (a lockbox within our bank account)
  5. Confirm with employee that deduction is active

Note: The escrow account holds withheld funds until HR manually submits them to Ascensus. Contributions must be remitted within 30 days of month end.

Opt-Outs

Section titled “Opt-Outs”

Employees may opt out within 30 days of notification or eligibility. Document opt-outs in employee records.

Contributions

Section titled “Contributions”

Employee Salary Reduction Contributions (Monthly)

Section titled “Employee Salary Reduction Contributions (Monthly)”

Deadline: Within 30 days after the end of the month in which the money was withheld.

Example: Contributions withheld from January paychecks must be in escrow account by end of February.

  1. Run payroll report showing salary reduction withholdings for the month
  2. Submit contributions to escrow within 30 days of month end
  3. Document contributions made

Employer 2% Nonelective Contributions (Quarterly)

Section titled “Employer 2% Nonelective Contributions (Quarterly)”
  1. Run report of eligible employees and compensation for the quarter
  2. Confirm 2% of each eligible employee’s quarterly compensation against quarterly contribution list
  3. Submit contribution to Ascensus by end of month following the end of quarter (e.g. Q4 will receive contribution by the end of the first month in Q1)
  4. Document contributions made

Eligibility for Employer Contribution

Section titled “Eligibility for Employer Contribution”

Employee must have earned at least $5,000 at Cadence OneFive in any 2 preceding calendar years.

New hires typically won’t qualify until their second calendar year.

Compensation Limit

Section titled “Compensation Limit”

Nonelective contributions are based on compensation up to $350,000 (2026 limit, adjusted annually for inflation).

Plan Document Maintenance

Section titled “Plan Document Maintenance”

Form 5305-SIMPLE

Section titled “Form 5305-SIMPLE”

Location: GrowthOps > HR and Benefits > Retirement Benefits > Ascensus SIMPLE IRA [Year]

Current plan elections:

  • Article I (Eligibility): Limited eligibility - $5,000 in any 2 preceding years (no current year requirement)
  • Article II (Elections): Standard 60-day period only (Nov 2 - Dec 31)
  • Article III (Contributions): 2% nonelective, $5,000 minimum compensation for eligible employees

Amending the Plan

Section titled “Amending the Plan”

To change plan provisions (e.g., add quarterly election periods):

  1. Update the relevant Article in Form 5305-SIMPLE
  2. Have CEO sign updated form
  3. Notify Ascensus of amendment
  4. Notify employees before next election period
  5. Update handbook and this administration guide

Provider Information

Section titled “Provider Information”

Current Provider: Ascensus (transferred from Vanguard July 22, 2024)

Key Plan Rules

Section titled “Key Plan Rules”

Election Period Restrictions

Section titled “Election Period Restrictions”
  • Employees can terminate salary reductions at any time
  • If terminated outside the election period, employee cannot resume contributions until the next election period (per Article II, item 2d of our plan)

Transfer Rights

Section titled “Transfer Rights”

Employees can transfer their SIMPLE IRA balance to another financial institution at any time, without cost or penalty.

Early Withdrawal Penalties

Section titled “Early Withdrawal Penalties”
  • Within first 2 years: 25% penalty (not 10%)
  • After 2 years: Standard 10% early withdrawal penalty if under age 59½
  • After 2 years, can roll over to traditional IRA, Roth IRA, 401(k), or other eligible plans

Vesting

Section titled “Vesting”

All contributions are 100% vested immediately.

References

Section titled “References”

Internal & Confidential: This page is only available in the internal handbook and contains confidential information.