A person has made the max contribution to their 401K as of 9/30/23. That person has started working for a company that only has a SEP IRA. Is the person able to have the employer contribute to the SEP IRA in 2023 after maxing out their 401K with the previous employer?
Thanks
2nd try. The person says that it is a SImple IRA not a SEP. Same question – Can the employee and/or the employer contribute to a Simple in the same year that a 401K (at a different company) employee contribution was maxed? TIA
Different answer than if it has been a SEP IRA. Since a SIMPLE IRA is subject to the elective deferral limit as well as it’s own salary reduction contribution limit, if the 401k has received the max contribution no SIMPLE IRA contributions can be made.
Permalink Submitted by Alan - IRA critic on Mon, 2023-10-02 15:01
Yes, as long as the employers are not under common control.