How much may an employee defer under a SIMPLE IRA plan?
An employee may defer up to $11,500 for 2009 and $10,500 for 2008 (subject to cost-of-living adjustments for later years). Employees age 50 or over can make a catch-up contribution of up to $2,500 for 2008 and 2009 (subject to cost-of-living adjustments for later years). The salary reduction contributions under a SIMPLE IRA plan are “elective deferrals” that count toward the overall annual limit on elective deferrals an employee may make to this and other plans permitting elective deferrals.
An employee may defer up to $10,500 for 2007 and 2008 (subject to cost-of-living adjustments for later years). Employees age 50 or over can make a catch-up contribution of up to $2,500 for 2007 and 2008 (subject to cost-of-living adjustments for later years). The salary reduction contributions under a SIMPLE IRA plan are “elective deferrals” that count toward the overall annual limit on elective deferrals an employee may make to this and other plans permitting elective deferrals.
