A SIMPLE (Savings Incentive Match Plan for Employees) retirement plan is a type of retirement plan that allows small businesses to set up tax-favored retirement savings for their employees. According to the IRS regulations, there are specific requirements and limitations to be eligible to start a SIMPLE retirement plan.
One of those limitations is the maximum number of employees that an employer can have who earn at least [tex]$5,000 in the preceding calendar year. This limit ensures that SIMPLE retirement plans remain accessible to small employers.
Based on the given requirements, the maximum number of employees that an employer can have, while maintaining eligibility for a SIMPLE retirement plan, is 100.
Thus, the correct answer to the question "What is the maximum number of employees (earning at least $[/tex]5,000) that an employer can have in order to start a SIMPLE retirement plan?" is:
100
