steve-o Posted January 24, 2012 Posted January 24, 2012 Can an employer make non-elective contributions of 3% to a SIMPLE IRA? Or is it limited to 2%? Could not find anything that shows either way. Employer wants to provide his one employee with 3% of comp (without any deferral by the employee) while maximizing employer's deferral/contribution to himself. Thought the 3% of non-elective would be a good way, if permissible. Any other ideas if that doesn't work?
ETA Consulting LLC Posted January 24, 2012 Posted January 24, 2012 The non-elective is limited to 2%; and 2% is the only non-elective amount that can be made. The matching contribution is 3%, but may be reduced to 1% for any two of a rolling five year period. Good Luck! CPC, QPA, QKA, TGPC, ERPA
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