max simple IRA elective and nonelective employer contributions and 60 day simple ira withdrawl and put back rules for Simple

Submitted by Christopher Burke on Wed, 2024-01-03 16:35

Q1: What is the max employer contributions? I understand the formulas 1,2,3 employee then employer match 1,2,3 or 2% Nonelective but can the employer choose to do 8% Non elective if they do it for all?
Q2: If an individual pulls dollars from a SIMPLE IRA plan with the intention of putting it back within the 60 day rule time frame; is this an allowable transaction? or Can it be put into an rollover IRA to avoid taxes and penalty?



Submitted by Alan - IRA critic on Wed, 2024-01-03 19:27

  1. The non elective % is 2% except that the Secure 2.0 allows a business with 26-100 employees to elect a 10% increase in limits if they also increase the non elective contributions to 3%. This is effective in 2024.
  2. A 60 day rollover to another IRA is allowed, but if less than 2 years has passed since the first SIMPLE IRA contribution, that rollover can only be made to another SIMPLE IRA. The usual one rollover limit applies within a 1 year period.

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