Simple IRA
The client is a business owner and has set a Simple up for him and his employees.
Can the owner opt out of personal contributions to the plan? If he does, does his company still make the 3% safe harbor to him?
Thanks
The client is a business owner and has set a Simple up for him and his employees.
Can the owner opt out of personal contributions to the plan? If he does, does his company still make the 3% safe harbor to him?
Thanks
Permalink Submitted by William Tuttle on Wed, 2019-04-03 21:55
The owner sponsoring a SIMPLE IRA is still subject to the plan rules. No employee deferral no employer match. If the owner wants an employer contribution without contributing. They could elect the 2% elective employer contribution option for the SIMPLE IRA plan, but that would apply to all employees not just him. Note: The selection of the employer contribution option has to occur during the initial notice/enrollment period of the plan or during the 11/2 – 12/31 annual notice/enrollment period.
Permalink Submitted by Geoffrey Kasher on Thu, 2019-04-04 12:44
thank you