changing a simple IRA employer contribution
I have an employer with a simple IRA. His document stated 2% to contribute.
a. can he contribute more to his employees than the 2% on his document?
b. Can he make a change still this year on his document to make it 3% instead of 2%?
c. Is it a long process to change his document or just a quick thing?
Thank you
Doug
Permalink Submitted by Alan - IRA critic on Fri, 2018-12-07 16:03
Apparently the employer is making a 2% non elective contribution instead of a matching contribution. For these non elective contributions the only option is 2%, so he cannot increase that. If he wanted to change over to 3% matching contributions (which only match what the employee elects to contribute), this could not be done until 2020 as the change would have to be included in the annual notification due by 11/2/19 for the following year.