Simple IRA
We have a client who has maxed out his SIMPLE IRA contributions for the year. He still believes the employer should be giving up the match, even though he is maxed out. I have tried explaining this to him, but he doesn’t get it.
Could someone help me explain this?
Permalink Submitted by Alan - IRA critic on Mon, 2021-12-06 15:38
The employer has until the due date plus extensions to make the required matching or non elective contributions for the year. Therefore, the client still has several months to go before any matching contributions will be contributed to his SIMPLE IRA. Note that matching contributions are based on client’s earnings, not on client’s salary reduction contributions.