Question

Sodium Services, Inc. (SSI) sponsors a SIMPLE for its employees with a 100% match up to 3% of compensation. Mary, age 42, has been an SSI employee for 14 years. In the current year, Mary earns $35,000 and defers $10,000 to the SIMPLE plan. What is the maximum matching contribution to Mary’s SIMPLE from SSI?(a) $0.(b) $1,050.(c) $3,000.(d) $10,000.

Answer 1

The maximum matching contribution to Mary’s SIMPLE from SSI is (b) $1,050

Step-by-step explanation:

Since SSI uses a 100% match up to 3% of compensation, the matching contribution from SSI to Mary's SIMPLE plan would be

(3% x $35000) = 1.050,00

The maximum matching contribution to Mary’s SIMPLE from SSI is (b) $1,050