Contributions to two SIMPLE IRA plans simultaneously

Submitted by Melinda Tingle on Sat, 2018-03-03 20:05

Can a business owner who operates two LLC’s contribute to each of their respective SIMPLE IRA plans? I am confused about the upper limit……if owner contributes $12,500 to first plan, can he then contribute another $6K to the second plan?



Submitted by Alan - IRA critic on Sat, 2018-03-03 20:37

  • There shouldn’t be two SIMPLE IRA plans under the employer aggregation rules since a common owner can only operate one plan for all employees, or perhaps none if the 100 employee limit is exceeded by the combined businesses. Therefore 12,500 is the max salary reduction contribution this owner can make.
  • Had this person been participating in another SIMPLE IRA of a separate employer, they would be allowed an additional SIMPLE IRA contribution of 6,000 (18,500 Sec 402(g) limit less 12,500 contributed to the other SIMPLE IRA).

Add new comment

Log in or register to post comments