Timing of SIMPLE Deferrals
One of my clients is self-employed and files a Schedule C. He wants to maximize his SIMPLE deferral in 2019 $13,000 + $3,000 (he is older than 50). He would like to make the payment sooner than later. Is it ok for him to make the payment on January 1st of each year, or must the deferrals be made at other intervals?
Permalink Submitted by Alan - IRA critic on Sat, 2019-03-09 02:31
I am not aware of any prohibition of making self employed SIMPLE contributions before the net earnings are actually generated. These are not salary reduction contributions because there is no salary with Sch C. Very early contributions are more frequent for traditional and Roth IRAs where it is done routinely and if the taxable comp does not materialize there will be an excess contribution.