Simple IRA

The client is a business owner and has set a Simple up for him and his employees.

Can the owner opt out of personal contributions to the plan? If he does, does his company still make the 3% safe harbor to him?

Thanks



The owner sponsoring a SIMPLE IRA is still subject to the plan rules. No employee deferral no employer match. If the owner wants an employer contribution without contributing. They could elect the 2% elective employer contribution option for the SIMPLE IRA plan, but that would apply to all employees not just him. Note: The selection of the employer contribution option has to occur during the initial notice/enrollment period of the plan or during the 11/2 – 12/31 annual notice/enrollment period.



thank you



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