Simple IRA match S-Corp
is the match for a SIMPLE IRA just 3% of the W2 wages for the owner? I have an owner with W2 wages of 200K, so 6K would be the maximum match in this case, correct?
The owners total compensation is closer to 600K, but I am asking for the match and I think it’s only based on the w2 wages. The simple plan has a 3% match.
Permalink Submitted by Alan - IRA critic on Wed, 2025-01-08 15:56
Yes, 6k would be the max matching contribution, but also no more than owner’s salary reduction contributions.
Permalink Submitted by Michael S on Wed, 2025-01-08 16:00
They contributed 16,000, so we should be good. Thank you!