SIMPLE IRA matching contribution more than 3% allowable?
Hello,
i have a client who wants to provide more matching than 3% . is it possible to to 4,5,6% matching using simple ira?
client wants to provide more benefits but avoid using Erisa plans.
Thanks!
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-17 16:37
No, 3% is the maximum matching contribution that can be made per Notice 98-4. However, the client should look into the 2% non elective contribution option to matching contributions if he has several employees who are electing low % of elective deferrals. If so, more employees would receive increases, although there may be some with decreases. Client would have to analyze the numbers to determine which is the best option for his situation.