matoaka
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Everything posted by matoaka
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SIMPLE IRA sponsor wants to skip true-up
matoaka replied to M Norton's topic in SEP, SARSEP and SIMPLE Plans
An employer is required to match the elected employee deferral. IRC 408(p)((2)(A)(iii). The match , however, can not exceed the "applicable percentage" which is 3% per IRC 408(p)(2)(C)(ii). The match is part of the requirements of a Qualified Salary Reduction Arrangement. A SIMPLE IRA may only receive deferrals thru a Qualified Salary Reduction Arrangement. Thus, improper match = one of the most common errors per the IRS website detailing the SIMPLE IRA.