Max Contrib to Retirement Plan after Employer Change
A client has been contributing to a SIMPLE IRA during the year, then changes employers. The new employer has a 401(k) plan. Do the SIMPLE contributions count toward the 401(k) limits? Thank you!
A client has been contributing to a SIMPLE IRA during the year, then changes employers. The new employer has a 401(k) plan. Do the SIMPLE contributions count toward the 401(k) limits? Thank you!
Permalink Submitted by Alan Spross on Thu, 2011-06-09 20:49
Yes, they do count.
The 401k max of 16,500 must be reduced by the amount client contributed to the SIMPLE IRA earlier in the year.