I would appreciate your interpretation of the following instructions concerning a Simple IRA. The situation is as follows: Sole proprietor has
3 employees none of which are interested in joining the Simple plan. The proprietor was told that he can still contribute to the plan for himself along with matching deductible funds from the business and does not have to contribute anything for the employees. The following is a quote from Kiplinger."If you have employees, you must include them in your plan and match their contributions dollar for dollar up to 3% of compensation OR contribute 2% of every employees' salary -- even for those who don't kick in money themselves."
He was told that since the employees do not make any contributions that he in fact is matching $0.00 up to 3% and therefore meets the requirements of the plan and he is allowed to contribute to his own account without contributing anything for the employees.
Thanks for your interpretations.
George L Anthony