May an employer contribute to an employee
Looking at the simplest way to create retirement accounts for employees in a small business, setting up payroll deduction IRAs seems the easiest. But if an employer wants to contribute to an employee's IRA, for example as a form of bonus, are they allowed to do that?
Several publications on the Dept. of Labor website say that the contributions are by the employee, but they don't specifically rule out an employer putting some amount in the account as well.
1. This is in regards to a small business with less than 10 employees.
2. I'm would to assume that wherever the money comes from, the total going into the account would have to meet the $5000 ($6000 if over 50) restriction.
Thanks in advance.
Employer contribution Payroll Deduction IRA allowed?
Looking at the simplest way to create retirement accounts for employees in a small business, setting up payroll deduction IRAs seems the easiest. But if an employer wants to contribute to an employee's IRA, for example as a form of bonus, are they allowed to do that?
Several publications on the Dept. of Labor website say that the contributions are by the employee, but they don't specifically rule out an employer putting some amount in the account as well.
1. This is in regards to a small business with less than 10 employees.
2. I'm would to assume that wherever the money comes from, the total going into the account would have to meet the $5000 ($6000 if over 50) restriction.
Thanks in advance.
