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I greatly appreciate your response clarifying my haziness in understanding certain aspects of the Simple IRA.

I just found the reply a few minutes ago that you apparently wrote a week ago. It didn't show up in my replies box, (must've attached to another person further down in the thread) so I was about to give up. I went back to the thread and found it.

Yes, I found them "awfully confusing" as well. I am much more comfortable in going forward with establishing a Simple IRA now, as we both seem to be in agreement; contrary to what the CPA's document to which I had refered said regarding participation requirements - (pg 2). He really caused me to doubt my understanding of Pub 560. Your thoughtful reply has laid my doubts to rest.

You did say "One caution here: you're limited as to the restrictions you can put on participation by employees." . . . "You don't say what your basis is for the statement that you will be the only eligible employee . . ."

I operate a small contract cleaning service, normally with 10-15 employees all working very, very part time (ave less than 10 hrs/week each). In 25 years, I have never paid a single employee over $5k/yr.

My form 5305-Simple will be completed and go in the mail to The Vanguard Group tomorrow, and I will rest more easy as a result of your taking the time to help me.

Thank you very much!

LeRoy D. Phipps
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