Simple IRA Match
A small non-profit 501c3 institution provides a match of 3% for each employee who contributes 5% to a Simple IRA. The Board of Directors has voted to provide a match of 5%. The Simple IRA only allows a 3% match. How can they contribute the additional 2% to make a total of 5% match. Can they set up a SEP to put in the additional 2%?
Permalink Submitted by Alan - IRA critic on Wed, 2016-08-31 21:12
No. A SIMPLE IRA must be the only qualified retirement plan for an employer. There is an exception for collective bargaining employees only.
Permalink Submitted by William Tuttle on Thu, 2016-09-01 04:33
Unless your first sentence is a typo, a SIMPLE IRA employer can not require employees to make a 5% contribution in order to get the 3% match. The 3% match must be 100% dollar for dollar up to 3% of compensation..