SIMPLE IRA – startMid year Match
If a SIMPLE IRA begins mid year (say July 1) and the plan documents clearly state a July 1 start date. Does the employer calculate the match based on the Calendar Year income or only the income from the plan start date. I have a two to two tie on this with CPAs and third part administrators.
Ron Naumann ChFC
Permalink Submitted by Martin Helmer on Wed, 2008-08-13 15:40
The match has to be based on the whole 12 month year’s compensation.
See Notice 98-4, Q and A D-4.
Also see IRC (p)(6)(A)(i) Definition of compensation
IRC 408(p)(6)(C) Definition of year