does an employer have to make any contribution to a simple IRA?
client contributed the max for being over 50 of $12,500 and 3k catchup to his simple IRA
I know the employer can either match up to 3% of compensation up to certain maximus or do non- elective contrib.
But:
a. Does the employer have to make any contribution at all when the employee contributes to the simple?
or
b. even though the employee makes a contribution, the employer can say he is not contributing at all?
thank you
Doug
Permalink Submitted by Alan - IRA critic on Fri, 2018-12-21 00:56
If the employee is eligible, a matching contribution is mandatory if the employer chose matching for that year, and if a non elective contribution was chosen, that contribution must be made whether the employee contributes or not. No employer contribution is only an option if the employee was not eligible.