Simple IRA matching
I started offering Simple IRA to my employees this year with 3% matching of their contributions. But what happens if by the end of the year some or all employees decide not to contribute at all? Am I allowed to make no contributions as well?
Thanks for the question. My understanding is that there are no minimum contribution amounts for SIMPLE IRAs. SIMPLE IRAs have mandatory employer matching, but that only applies if your employees are contributing. If they don’t contribute, I don’t believe you are required to contribute to a SIMPLE on their behalf. However, you may want to check with an accountant to verify this requirement based on your individual circumstances.
Hope this helps,