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https://boards.fool.com/kcofmaine-somewhat-concerned-wrote-you-wrote-10350271.aspx
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| Subject: Re: Setting Up SIMPLE IRA | Date: 10/2/1998 7:21 PM | |
| Author: TMFPixy | Number: 5793 of 101543 | |
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KcofMaine, somewhat concerned, wrote: You wrote... As the employER, you will have to contribute in unprofitable years as well whether you use a nonelective contribution or match. It is my understanding from a couple of brokerages, and from the IRS, 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. Right or wrong? Fear not. If you have other employees, what I said will apply. But if you can't pay yourself as the only employee, then as the employer no contribution will be due. The brokers are correct. Regards….Pixy |
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