Traditional and SIMPLE IRA contribution at the same time
A person has an S corp and is maxing out their SIMPLE IRA (over age 50).
Is there an income limit that reduces what they can contribute to a personal IRA?
A person has an S corp and is maxing out their SIMPLE IRA (over age 50).
Is there an income limit that reduces what they can contribute to a personal IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2025-04-25 13:08
There is no income limit to contribute to an IRA, but there is for the contribution to be deducted if the individual (or a spouse) contributes to a workplace plan. The SIMPLE IRA contribution is treated as a workplace plan and therefore the MAGI for the person’s filing status may be too high to deduct the IRA contribution.
In that case, a Roth contribution has a higher MAGI limit and would be the next option to look into.