401k and SIMPLE IRA one tax year and 2 Employers
If an employee age 51 added $8,000 to her 401k in 2019 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?
With the above contributions she wouldn’t exceed the $16k SIMPLE-IRA limit and she’d also be below the $25k 401k limit. Both plans offer the catch-up. The SIMPLE-IRA custodian told her she may add only up to $11,000 to the SIMPLE IRA for 2019.
Permalink Submitted by David Mertz on Mon, 2019-07-22 21:37
You are correct, the employee can add $13,000 regular elective deferral and $3,000 catch-up elective deferral to the SIMPLE IRA without exceeding overall statutory limits. The SIMPLE IRA custodian did not factor in the catch-up for an employee age 50 or over in 2019. With $8,000 already contributed to the 401(k), $11,000 would be the limit to the SIMPLE IRA if the employee was *under* age 50 throughout 2019.
Permalink Submitted by Maria Difalco on Tue, 2019-07-23 13:34
cannot access topic 15716; Post. 50684. Why? Cannot find original query related as to who/what should be beneficiaries for an IRA….the trust or human beneficiaries?