SIMPLE IRA Match Waiver
I have a new one that I’ve never run across. I have a non-profit client that has a SIMPLE IRA. The former executive director has asked if instead of taking her matching contribution she can simply donate it back to the organization. (I know we can go the steps of depositing the money in to her SIMPLE IRA account and then distributing it back out as a charitable contribution). the group and the employee asked if they could just waive the match at her direction and keep the funds as a donation.
Is there a way to do this without jeopardizing the plan for not making the match?
Permalink Submitted by Alan - IRA critic on Tue, 2022-02-08 21:22
There are no provisions to do that, and I would not expect any. I suppose this idea may have been motivated by intended donor not being able to itemize a normal donation.
Permalink Submitted by David Mertz on Tue, 2022-02-08 22:31
Note that after making the SIMPLE IRA contribution the funds would have to be rolled over to an ordinary TIRA and the QCD made from there. A QCD cannot be made from a SIMPLE IRA. To be able to roll over from a SIMPLE IRA to an ordinary TIRA the SIMPLE IRA must have been established for at least 2 years.