SIMPLE IRA Employer Contributions
Is there (what is) the limit on employer’s matching contributions to an employee’s SIMPLE IRA account? Can the contribution be 3% of (the employee’s) compensation to any value? Ex: 3% of a $300,000 salary ($9,000)?
Is there (what is) the limit on employer’s matching contributions to an employee’s SIMPLE IRA account? Can the contribution be 3% of (the employee’s) compensation to any value? Ex: 3% of a $300,000 salary ($9,000)?
Permalink Submitted by Alan - IRA critic on Wed, 2020-03-04 02:48
Yes, but the matching contribution cannot exceed the salary reduction contributions. Therefore, if the salary reduction contributions were only 2% (6,000), the matching contribution could not exceed 6,000. Or if the salary reduction contributions were 4% (12,000), the matching contribution would be limited to 9,000.