Maximum Simple IRA contribution
I have a client who is employed in the local school system, and contributes $20,400 per year to her 457b plan.
Her husband has a Simple IRA plan at his company. She works for him part time.
How much of her earnings with her husband’s business is she allowed to contribute to the Simple IRA? Than you.
Permalink Submitted by William Tuttle on Sat, 2022-04-23 21:27
There is one employee deferral limit (2022 = $20,500) across all 401k, 403b and SIMPLE IRA plans.
The maximum 2022 SIMPLE IRA employee deferral she can make is $20,500 – her 2022 457b employee deferral.
Permalink Submitted by Alan - IRA critic on Sat, 2022-04-23 22:00
spiritrider, since the 457b elective deferral limit is not aggregated with any other plans, the SIMPLE IRA contribution limit should not be affected by the amount of 457b deferrals. The SIMPLE limit would only be affected by the SIMPLE IRA salary reduction limit per 408(p). So I agree with your first bullet point, but not the second.
How Much Salary Can You Defer if You’re Eligible for More than One Retirement Plan? | Internal Revenue Service (irs.gov)
Permalink Submitted by William Tuttle on Sat, 2022-04-23 23:48
Oops, I knew that as my list confirmed the employee deferral limit does not apply to or include 457b contributions. I just totally spaced it.