401(k) plan is closing and I want now to make contriubtions
to my simple IRA to make up for the maximum I am allowed.
my employer closed the business and the 401(k) plan in 2011. I was participanting in this plan and I had made 7000.00 contributions in 2011. I happen to have a simple IRA for my small business on the side as well. Could I make the 2011 contriubtions allowed to my simple IRA with respect to the maximum allowed minus the 7000.00 contriubtion I have already made to the 401(k)?
Permalink Submitted by Alan Spross on Fri, 2011-05-13 22:01
The maximum you can contribute to the SIMPLE IRA is 11,500, but in addition you cannot exceed 16,500 including your 401k deferrals. Therefore, you could contribute up to 9,500 to your SIMPLE IRA (16,500 less the 7,000 deferred to the 401k). Catch up contributions are also allowed if you are eligible.