Contributions OVER Maximum SIMPLE IRA contribution limits
New Prospective client, 61 year old male with 120K salary, brought in his SIMPLE IRA statement and after reviewing it I realized that he had contributed $24,000 for 2018 and his employer also matched $3500. Is there any scenario where he would be allowed to put this much money into a SIMPLE IRA in a given year?
Permalink Submitted by Alan - IRA critic on Tue, 2019-03-12 16:17
No. Even if the plan was a SIMPLE 401k, the salary reduction contribution limit is the same as for a SIMPLE IRA, 15,500 including the 3,000 catch up contribution. That said, if client received less in a prior year than entitled, the make up contribution for the prior year(s) might account for this. Even if the custodian thought this was a 401k, the 2018 limit was 24,500, not 24,000. Client will have to get an explanation from the employer to know for sure how they arrived at these figures.