Participating in a SOLO 401(k) and SIMPLE IRA
My client currently has a SOLO 401(k) for her own business and has taken an additional job which is a W-2 position. I’m pretty sure she can participate in both plans, but what is the annual maximum she can contribute?
Thank you,
Denise Sowell
Permalink Submitted by Alan - IRA critic on Fri, 2025-05-09 16:01
Each plan is subject to it’s own maximum, but there is also an overall elective deferral limit of 23,500. Therefore, when deciding how much to defer to each plan, priority should be given to the SIMPLE IRA where the matching contributions are paid for by that other employer.