Simple Plans and ROTH 403b plans
A client is a participant in his SIMPLE plan for his own company and he also works for a University that offers a 403b plan.
Can he max out the SIMPLE at $13,500 pre tax and also contribute either $19,500 in his ROTH 403b or $19,500 ROTH 403b pre tax?
As long as he doesn’t contribute more than $58,000 will he be fine?
Permalink Submitted by Alan - IRA critic on Thu, 2021-12-02 02:04
No. Simple IRA plans have their own 13,500 elective deferral limit, but are also subject to the overall elective deferral limit of 19,500 for all employer plans of that taxpayer. Therefore, if he contributes 13,500 to the SIMPLE IRA, his Roth or pre tax 401k elective deferral limit is 19,500 less 13,500 or 6,000. left for the 401k (combination of pre tax and Roth deferrals. The SIMPLE plan is not subject to the 58,000 overall limit.
Permalink Submitted by Vickie Intriago on Thu, 2021-12-02 19:31
I assume that if client is over 50 then that overall elective deferral limit betwen the Simple and 403b at work is $26,000 correct per individual?
Permalink Submitted by William Tuttle on Fri, 2021-12-03 08:33
There is no global limit. The employee deferral and catch-up contribution limits are separate and the application is more complex.