SIMPLE IRA for Partnership

[MarZDoates]

Partnership adopted SIMPLE IRA (prototype) in April, 2001. Effective date of the SIMPLE IRA was January 1, 2001. Deferrals began in April.

Question: With respect to calculating the 3% match, do we use compensation for the whole year or do we use only compensation from April thru December?

[Gary Lesser]

Use compensation for the entire year, it is reguired under regulations.

[Guest kdm]

I work for a financial institution which has a SIMPLE IRA document that defines compensation as for the whole year. However, I believe this is true of any SIMPLE IRA document.

[MarZDoates]

Thank you very much!