IRA Contributions to a SIMPLE

Can a participant in a SIMPLE make traditional IRA contributions to the SIMPLE? Does the 2 year period make a difference? Does it make a difference if the participant is no longer with the employer that has the SIMPLE?



A TIRA contribution cannot be made to a SIMPLE IRA, whether the SIMPLE IRA is active or not. The TIRA contribution should be made to a TIRA, and if the first SIMPLE IRA contribution was made over 2 years ago, the SIMPLE IRA could be rolled into the TIRA account, leaving only one IRA account. However, if a salary reduction contribution was made to the SIMPLE IRA in 2019 or an employer matching contribution FOR 2019, the SIMPLE IRA owner is considered an active participant in a workplace retirement plan, and the TIRA contribution cannot be deducted if MAGI is too high.



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