A client has long maintained a SIMPLE IRA for his business in which he employs one other person. Traditionally, the plan had matched all contributions up to 3%, and both employees contributed. In 2022, however, neither owner nor employee contributed. Can the business:

1. Make no employer contribution to either person’s SIMPLE since neither contributed?
2. Instead, make a 2% nondiscretionary match to both SIMPLEs if the owner so desires?

The owner plans to wind down this business by the end of the year or early next year.

Thank you!