SIMPLE Contribution Limit
Jim is the sole employee of an LLC. He earns about $50K per year and is past 50 years old. Is there anything that would prevent him from contributing $15.5K to his SIMPLE?
Jim is the sole employee of an LLC. He earns about $50K per year and is past 50 years old. Is there anything that would prevent him from contributing $15.5K to his SIMPLE?
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-18 20:00
No, unless he is also contributing elective deferrals to a different retirement plan in the same year, since the elective deferral limit (24k including catch up) applies to both SIMPLE IRA contributions plus other elective deferrals.