SIMPLE IRA – Company sponsored plan
Prospect asked if he could contribute to his SIMPLE IRA out of pocket instead of only the deferral through his payroll.
I understood that he can only do that through is company payroll – please let me know if I am wrong… Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2021-07-08 15:40
If prospect is not self employed, you are correct. Simple IRA contributions are defined as “salary reduction contributions” meaning that an employee receiving wages must contribute directly out of their salary.