What happens if I don’t make the matching contribution to the SIMPLE IRA plan?
A SIMPLE IRA plan must satisfy certain rules to obtain favorable tax benefits. Failure to satisfy these rules, for example, by not making required matching contributions, can result in the loss of favorable tax benefits for the employer and all participants. An employer can, however, correct certain SIMPLE IRA plan failures under the IRS’s Employee Plans Compliance Resolution System (EPCRS). For additional information, review our SIMPLE IRA Plan Fix-It Guide and visit the Correcting Plan Errors Web page.
Related Questions
- What happens to any unused contribution? Why can the participants get a refund of their unused contributions at the end of the Plan Year?
- When must an employer make matching and nonelective contributions under a SIMPLE IRA plan?
- What employer matching contribution is generally required under a SIMPLE IRA plan?
