Simple IRA Contributions
Regarding the SIMPLE IRA , it is my understanding that contributions by the employee and the employee-owner (employer/who is also a participant) are to be complete by deferral in the calendar year of for which the contribution is made (example 2024).
Does the owner have privilege and can make his/her own employee contribution up to April 15th of the following year (example 2025).
I know the employer can make their matching contributions and nonelective contributions up to April 15th or their extension deadline.
So, the questions is, can the employer participant make his/her “contributions” (in this example) for 2024 in 2025 (like the employer participant can in the SEP IRA)?
Permalink Submitted by Alan - IRA critic on Tue, 2025-04-15 13:49
No, the deadline is January 30th for prior year contributions, even when the business owner files as a sole proprietorship. This could present a challenge for those with low taxable compensation as they might not yet know what their max salary reduction contribution will be.