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URL:  https://boards.fool.com/tmfpixy-wrote-as-the-employer-you-will-have-to-10350233.aspx

Subject:  Re: Setting Up SIMPLE IRA Date:  10/2/1998  6:59 PM
Author:  shess Number:  5790 of 103164

TMFPixy wrote:
As the employER, you will have to contribute in unprofitable years as well whether you use a nonelective contribution or match.

KCofMaine responded:
It is my understanding...that IF one's business is a sole prop., and there are no employees except the owner, then there are no necessary employer contribtions needs..IF the 3% matching election is made by the employer & the employee (also the owner/employer...same person) doesn't defer any income in a lean year.

That would make sense. It's a 3% _matching_ contribution, after all (as opposed to the 2% uniform contribution, which would have to happen every year). So, as a self-employed, you can certainly choose not to contribute any of the $6k, and thus 3% of zero is zero... Or, you could work backwards from what you _can_ afford to contribute in order to get the numbers right.

Later,
scott

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