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SIMPLE IRA Matching Contribution


Guest Jodi

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Posted

When an employee becomes eligible for a SIMPLE IRA and enters on July 1, does the employer have to make their required matching contribution on compensation for the entire calendar year or just on the compensation while eligible? My understanding is that's it's on the calendar year compensation. Thank you.

Posted

Your understanding appears to be correct. [iRS Notice 98-4, Q&A D-4]

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