I understand that under the Employer Nonelective Contribution, our client’s maximum employer contribution would be limited to 2% of maximum eligible compension of $290,000 for 2021 (which calculates to $5,800) and she would have to contribute 2% to her two employees regardless of whether or not they contribute………….

HOWEVER………………. is it true that the maximum she could contribute to her SIMPLE IRA account in 2021 under the Employer Matching Contributions election would be the $16,500 as an employee (she is over 50) PLUS an employer contribution match of 3% of her annual pretax compensation? Is she limited to the $16,500 in total contributions including match?

Thank you.