Can employer contribution in a SIMPLE IRA be modified?
SIMPLE IRAs require a plan sponsor provide either a 2% contribution or a 3% match to eligible participants. While it is possible to reduce the match, the decision to do so must be made 60 days before start of a new plan year. Neither 3% match nor 2% contribution can be suspended or reduced mid-year. The IRS says that employer must make the contributions promised employees in the SIMPLE IRA plan notice. So, no real relief for SIMPLEs at this point, unless the legislators intervene later.
Cetera Retirement Plan Specialists is a third-party administrator and may not offer tax, legal or investment advice. Plan sponsors should consult their own tax, legal or investment professionals.