What are the 2 ways the law regulates contributions to a simple IRA?

The law regulates contributions to a Simple IRA primarily through two key mechanisms: contribution limits and eligibility requirements. For 2023, employees can contribute up to $15,500 annually, with an additional catch-up contribution of $3,500 for those aged 50 and older. Employers are also mandated to either match employee contributions up to 3% of their salary or make a fixed contribution of 2% of eligible employees' compensation, ensuring compliance with the plan's guidelines. Additionally, there are restrictions on who can participate, typically aimed at small businesses with fewer than 100 employees.