Simple IRA – 2024 Max contribution Clarification
My confusion is surrounding Simple IRA rules for small companies <25 employees and the abilility to now increase the “contribution limit” an additional 10% above the stated $16000 and catch-up $3500.
Are they both able to be increased by the additional 10% and do they follow the rounding to nearest $500 rule for those amounts?
Has the clarification for this been finalized?
Thanks
Matt
Permalink Submitted by Alan - IRA critic on Wed, 2024-07-24 17:45
Both limits are increased by 10%, making them 17,600 and 3,850 respectively. There is no rounding done.
Related guidance with respect to these limits can be found in IRS Notice 2024-2.