How much of an employees pre-tax compensation can s/he invest in a Savings Incentive Match Plan for Employees (SIMPLE) IRA?
Employees can choose to invest up to 100% of compensation, up to a maximum of $6,500 per year for 2001. For 2002, the limit is $7,000. This limit increases each subsequent year until it reaches $10,000 in 2005. After 2005 it will increase with indexing in $500 increments. Beginning in 2002, SIMPLE IRA plan participants who are age 50 or older by the end of the year can make catch-up contributions on a pre-tax basis.
Related Questions
- How is Final Average Compensation (FAC) determined for individuals who are not eligible employees and Plan members (or former Plan members) on December 31, 2004?
- What is the eligibility for participation in the Investment Savings Plan with regard to part time employees?
- How Do You Set Up A Savings Incentive Match Plan For Employees (SIMPLE)?
