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What are the types of employer contributions for a SIMPLE IRA plan?

At WealthRabbit, we offer two employer contribution options for SIMPLE IRA plans:

3% Dollar-for-Dollar Match: The employer matches each employee’s salary deferral dollar-for-dollar, up to 3% of their compensation. Employers can reduce this match below 3% in no more than 2 out of 5 years.

2% Non-Elective Contribution: The employer contributes 2% of each eligible employee’s compensation, regardless of whether the employee makes their own contributions.

Note: The employer’s contribution is limited to a maximum of 3% of each employee’s compensation.