SIMPLE IRA Max Contribution

How do we calculate the maximum SIMPLE IRA contribution for a sole proprietor?



For 2024 the max salary reduction contribution is the lesser of:

Net earnings from SE less 1/2 of SE tax or
16,000 plus 3,500 catch up contribution for age 50+

The matching (employer) contribution can be up to 3% of compensation (but not more than the salary reduction contribution).

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