401k & Simple plan
Can an individual that has 401k option at one employer and Simple IRA option at another employer simultaniously contribute to both plans? If so What are the contribution limits?
If the employee is age 50+ and added $8,000 in 2019 to her 401k and then changed employers to one with a SIMPLE-IRA, is it correct that she can add up to $16,000 to her new SIMPLE-IRA for 2019? This way she wouldn’t exceed the $16k SIMPLE-IRA limit and she’d be below the $25k 401k limit, too. All assumes both plans offer the catch-up.
I am 69 and plan to continue working full time if at all possible until age 77. I am receiving a small federal pension at present but will lose 50% of my social security through the Windfall Elimination provision until I have paid into SSA for 30 years. That’s why age 77. I was told by a social security employee that I should plan to start drawing my SS benefits at age 70, and that as long as I continue to work, I will get more SS money with each passing year until the penalty goes away at age 77. Is this true? I have moved all of my traditional IRA funds into my 401k plan. This way I do not have to start RMD until I stop working? Is this true? Is it worth while at my age to convert these funds into a ROTH 401K? The funds are currently in a money market account. Thank you in advance for your reply.
Please re post this as a new thread, as it has no connection to the issues in this thread.
Permalink Submitted by Alan - IRA critic on Thu, 2019-06-27 16:04
Yes, contributions can be made to both. However, the 401k elective deferral limit of 19,000 applies to the total contributions to both plans. The SIMPLE IRA has it’s own 13,000 limit as well. Therefore, if you contributed 13,000 to the SIMPLE IRA, there is only 6,000 left to contribute to the 401k. Assumes under age 50.