SIMPLE match

Submitted by Don Warnke on Wed, 2014-03-26 18:45

Employer is setting up a SIMPLE effective 4-1-2013 and making a 3% matching contribution.If employee choses to contribute 10% into plan will the 3% matching employer contribution only apply to income employees earned
4-1-2013 and after or will the employee earning from 1-1 to 3-31 also be included when determining matching requirements?



Submitted by Alan - IRA critic on Wed, 2014-03-26 19:13

There cannot be salary deferral before the date of the plan and therefore matching would only apply to earnings after 4/1.

Submitted by Martin Helmer on Wed, 2014-03-26 21:50

Matching will be 3 percent of the whole year’s pay.  See Notice 98-4, q and a d-4.  It’s also in the statute under 408(p).

Submitted by Alan - IRA critic on Wed, 2014-03-26 22:25

Thank you Martin. I actually read d-4 before posting, but misinterpreted it.

Submitted by Denise Appleby on Sat, 2014-03-29 03:33

The deadline for setting up a SIMPLE is October 1. Do you mean 2013 or 2014? Because it is too late for 2013

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