Skip to main content
No. of Recommendations: 0
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.