ROTH IRA and SIMPLE IRA – Combined Contribution Limits 2007
My brother called today and he said he received a call today from his accountant and his accountant said he had contributed $500 to much to his combined retirement accounts in 2007. His accountant said the maximium allow amount was $15,500. The following contributions were made in 2007.
Simple IRA Salary Deferrals – $10,000
Simple IRA – Employer Contributions = $2,000
ROTH Contribution = $4,000
In addition, he is a self-employed, married and make approx 100K.
I suggested to my brother that the $15,500 limitation was for 403B/401K salary deferrals and that his combination was not limited by this amount.
Please give me some facts and information so I may give his accountant.
Thanks in advance
Permalink Submitted by Alan Spross on Sun, 2008-02-17 03:04
15,500 is the total limit for IRA and employee deferrals for a SIMPLE IRA. The employer share does not count against this limit, so he should be OK. The accountant may not realize that 2,000 is the employer match.