Simple + 401(k)

I was able to find information on multiple plan contribution limits on previous postings but still had three questions.

1. Does the $54,000 2017 cap apply separately to the Simple IRA then separately to the 401(k)? For example employer contributions could be $54,000 for the 401(k) and $54,000 for the Simple IRA for a total of $108,000?
2. Does the $54,000 cap just apply to employer contributions? In short the maximum 401(k) contribution is the employer contribution of $54,000 plus $24,000 (assuming over 50) deferred contribution allowed, less the deferred contribution to the Simple IRA say $15,500 for a total of $62,500?

Note: the Simple IRA income is from a partnership and the 401(k) income is from Sch C.

Many thanks as always.

Mary



Need more information:1. Are the partnership and Sch C proprietorship in a controlled group (what % do you own in the partnership and what is it’s business?)2. Are you age 50 or above?3. Does the SIMPLE provide the 2% profit sharing or 3% match employer contribution? 



Thanks JM.  I was a 51% partner until 12/31/2016.  The income was 2016 earnings paid in 2017.  I ceased to be a partner 12/31/2016.  I am a “fee only” planner.  Now I am a consultant for the same firm.  The 401(k) was established this year for the consulting income.  I can accept other clients than my old firm.  I am over 50.  The SIMPLE has the 3% employer match contribution.   



The annual additions limit does not apply to SIMPLE IRA plans, so the 60k limit (54k plus 6k 401k catch up) applies solely to the 401k contributions.  However, the 402g elective deferral limit of 18k for the 401k must be reduced by the amount of salary reduction contributions made to the SIMPLE IRA.  I doubt that these are considered a single employer under which a SIMPLE IRA must be the ONLY plan, but if they are there is a larger problem.



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