SIMPLE IRA

[Felicia]

If a sole proprietor has a SIMPLE IRA, makes "salary reduction contributions" throughout the year but dies prior to making the employer contribution, is an employer contribution still required? If so, who makes it (there are no other employees)?

[Gary Lesser]

Assuming no employees (no state law issues), yes and no. Although the contribution can still be made by the executor, it doesn't have to be, and (if not) the SIMPLE will not be a simple for the year. Excesses will have to be dealt with. Why not make it? Probably better to pass it on in the IRA.