Simple IRA – 2024 Max contribution Clarification

My confusion is surrounding Simple IRA rules for small companies <25 employees and the abilility to now increase the “contribution limit” an additional 10% above the stated $16000 and catch-up $3500.

Are they both able to be increased by the additional 10% and do they follow the rounding to nearest $500 rule for those amounts?

Has the clarification for this been finalized?

 

Thanks

Matt



Both limits are increased by 10%, making them 17,600 and 3,850 respectively. There is no rounding done.

Related guidance with respect to these limits can be found in IRS Notice 2024-2.

 



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