New SIMPLE IRA contribution limits
Secure Act 2.0 increase the SIMPLE IRA contribution limits to $17,600 plus an additional $3,850 catch up of age 50 or more. I cannot find if the 3% match is also available on the new contribution limits so that a self employed person making 715,000 can match the $21,450 new contribution limit for 2024 for a person age 50 or more.
Permalink Submitted by Alan - IRA critic on Fri, 2024-05-24 15:46
Since catch up contributions are still treated as salary reduction contributions, matching has always applied to them, and Secure 2.0 does not change that. Of course, higher employee contributions subject to matching will increase the chances that the 3% of compensation limit will apply more often.
A 401k (solo if applicable) would enable much higher contributions for this taxpayer, so perhaps should be considered for 2025.