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SIMPLE IRA Match Question


coleboy
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Employer has SIMPLE IRA with the 3% match. The 3 owners have maxed out their contributions in July. The match is made each pay period. The question is should the 3 owners continue getting the 3% match even though their contributions have maxed out? I realize that the match is made on the whole year's compensation but what if their own contributions ended up being less than 3% when their total year's compensation is used.

Should the employer wait to true-up at year-end? Or is it like a 401k plan where if the match is made each payroll period, it stops when the contribution stops and no true up is needed.

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The match is dollar for dollar up to 3% of calendar year income. The 401(a)(17)
compensation limit doesn't apply for purposes of the MATCHING contribution.

If 'twere me, I'd wait and do a true-up at the end of the year once final comp is known. There's no requirement to deposit it per payroll - that's just an accounting/bookkeeping/payroll convenience/procedure.

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