does an employer have to make any contribution to a simple IRA?

client contributed the max for being over 50 of $12,500 and 3k catchup to his simple IRA

I know the employer can either match up to 3% of compensation up to certain maximus or do non- elective contrib.

But:

a. Does the employer have to make any contribution at all when the employee contributes to the simple?

or

b. even though the employee makes a contribution, the employer can say he is not contributing at all?

thank you
Doug



If the employee is eligible, a matching contribution is mandatory if the employer chose matching for that year, and if a non elective contribution was chosen, that contribution must be made whether the employee contributes or not. No employer contribution is only an option if the employee was not eligible.

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