What is the maximum contribution that Rockland Quarry Company will match for SIMPLE IRA contributions?

The maximum contribution that an employer can match for a SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) is typically up to 3% of an employee's compensation. This is a key feature of SIMPLE IRAs, designed to encourage employee participation in retirement savings while providing a mechanism for employers to contribute as well.

Employers have the option to either match employee contributions dollar-for-dollar up to the 3% limit or provide a fixed contribution of 2% of all eligible employees' compensation, regardless of whether the employees contribute or not. However, the matching contribution is the more common approach.

Understanding this provision helps in planning retirement contributions and knowing the benefits available through employer-sponsored plans like SIMPLE IRAs.