Simple IRA Match

Submitted by Diane DeOliveira on Fri, 2020-03-13 17:45

I have a client who has a partnership in which the business showed a loss in 2019. The owner deferred the max into her SIMPLE IRA. Is that allowed as she had no income? And if so, would she also make the 3% match?



Submitted by William Tuttle on Fri, 2020-03-13 20:45

  • Both the employee deferral and the employer match would have to come from net earnings from self-employment.
  • For a SIMPLE IRA this is business profit * 92.35%.
  • No business profit, no contributions.
  • She must remove the excess deferral and earnings by 04/15/2020

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