SIMPLE IRA limits vs income
I am self employed and have a SIMPLE IRA account. I also have a job with a W-2 that I rely on for income. For 2010 my self employment income is only $432. Can I still contribute the maximum amount of $11,500, or am I limited to the net income for the self employment business?
Permalink Submitted by Alan Spross on Thu, 2011-02-24 22:11
You are limited to the net earnings from self employment generally shown on Sch SE.
If you are also covered by a 401k or similar plan for the regular job, your annual max deferral limit of 16,500 must be reduced by the amount you contributed to the SIMPLE IRA.
Permalink Submitted by John Latkowski on Thu, 2011-02-24 22:21
Can a person open and fund a SIMPLE IRA for the 2010 tax year before 4/18/2011, or does the account have to be opened in 2010?
Permalink Submitted by Alan Spross on Fri, 2011-02-25 04:09
See first column on p 10:
http://www.irs.gov/pub/irs-pdf/p560.pdf
Permalink Submitted by Jeanne Weaver on Thu, 2015-04-09 17:47
Is an eligible employee allowed to participate (i.e. reduce her taxable income) in this plan if her household income is above the AGIlimit which would normally disallow a deductible contribution to an IRA?Jeanne
Permalink Submitted by Alan - IRA critic on Thu, 2015-04-09 17:57
Yes, there is no income limitation for an employee to request salary reduction contributions to a SIMPLE IRA.