can an employer match up to his salary in 2018 for a simple ira contribution?
if the employer has a simple IRA and does the 3% for his employees, does he also get to put $12,500 plus 3k catchup (over 50) and another 3% to his $15,500 based on his salary?
Thank you
Doug
Permalink Submitted by Alan - IRA critic on Fri, 2018-12-07 17:20
Yes, the additional matching contribution for him will be limited to 15,500 or 3% of his compensation, whichever is less. His total contribution will therefore be 15,500 plus the allowed matching contribution.
Permalink Submitted by Nathan Kastner on Fri, 2018-12-07 21:31
I’ll add a wrinkle/follow-up question for Alan: What if the OP is misusing the term “salary”, the business is an LLC taxed as a partnership, and the business owner’s salary is really “guaranteed payments”… Does that change the answer? Doesn’t it get into that 20% of net income calculation at some point?