SIMPLE for Client - Responsibilities for non-English Speaker

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#1
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This is at a very early stage but I think this is something I need to think about now.

Client is an S Corp (H&W - both speak good English). Employees are all from Mexico or Central America and, as I understand it, have varying degrees of English proficiency. - ranging from "better than mine" to Spanish only. I have suggested retirement planning to the client and my sense is that a SIMPLE would be best for them. What responsibilities do I or the client have in providing materials in a language other than English?
 

#2
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I would think you as the tax advisor have zero responsibility to provide plan documents to anyone in any language.

Would this be the plan administrator's responsibility and area of expertise?

Are simple IRAs subject to ERISA?

29 CFR § 2520.102-2(c)(1):

(c) Foreign languages. In the case of either -

(1) A plan that covers fewer than 100 participants at the beginning of a plan year, and in which 25 percent or more of all plan participants are literate only in the same non-English language

....

the plan administrator for such plan shall provide these participants with an English-language summary plan description which prominently displays a notice, in the non-English language common to these participants, offering them assistance. The assistance provided need not involve written materials, but shall be given in the non-English language common to these participants and shall be calculated to provide them with a reasonable opportunity to become informed as to their rights and obligations under the plan. The notice offering assistance contained in the summary plan description shall clearly set forth in the non-English language common to such participants offering them assistance. The assistance provided need not involve written materials, but shall be given in the non-English language common to these participants and shall be calculated to provide them with a reasonable opportunity to become informed as to their rights and obligations under the plan. The notice offering assistance contained in the summary plan description shall clearly set forth in the non-English language common to such participants the procedures they must follow in order to obtain such assistance.
 

#3
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That's most helpful, TY. You're right. It would be the plan administrator's job and now I have a relevant question to ask of them (or prime the client to do so).
 

#4
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SumwunLost wrote:This is at a very early stage but I think this is something I need to think about now.

Client is an S Corp (H&W - both speak good English). Employees are all from Mexico or Central America and, as I understand it, have varying degrees of English proficiency. - ranging from "better than mine" to Spanish only. I have suggested retirement planning to the client and my sense is that a SIMPLE would be best for them. What responsibilities do I or the client have in providing materials in a language other than English?


As an aside, from my experience, if they don't speak English, the chance of them even contributing are near zero.
 

#5
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Fair point, but these are skilled and semi-skilled workers - eight employees, all with no less than five years' service. Employer pays decent wages. My expectation, if this even goes ahead, is that at least a couple of non-shareholders will contribute and a couple (who get a loan from the employer, pay it off, then take another loan a month or so later) will certainly not. Remains to be seen what the others will do.
 


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