if a company has a simple ira, an someone does not contribute, is the company stll allowed to give 3%?

Question

I am wondering about the folks who do not enroll in the ira, can we pay them in their paycheck?

Answer 1

I think you are creating a dangerous precedent. Either you give the people 3 percent in the IRA/401K plan or they don't receive it. Otherwise the person who is putting money in the IRA could also want you to give them the cash in their paycheck. I think you need a clear cut policy stating that they must put this much in the IRA for the company to put 3 percent in their IRA, and that if they choose not to put anything in the IRA then you won't put anything in there either.