SIMPLE IRA Excludable compensation
Hello,
Can an employer exclude certain types of compensation when calculating employer match? like they can with 401K plans?
The Form 5304 only states the definition of “Salary”. Do you accept it as a Base salary?
Or are overtime and bonuses to be included?
Thank you!
Permalink Submitted by Alan - IRA critic on Mon, 2019-12-30 18:12
The 5304 and 5305 define “compensation” on the form. Matching must be based on that definition. It may be possible to change the definition of compensation on individually filed prototype plans submitted to the IRS for approval. Otherwise bonuses and OT must be included.