May an employee participate in a SIMPLE IRA plan if he or she also participates in a plan of a different employer for the same year?
An employee may participate in a SIMPLE IRA plan even if he or she also participates in a plan of a different employer for the same year. However, the employee’s salary reduction contributions are subject to the limitations of section 402(g), which provides an aggregate limit on the exclusion for elective deferrals for any individual. Similarly, an employee who participates in a SIMPLE IRA plan and an eligible deferred compensation plan described in section 457(b) is subject to the limitations described in section 457(c). An employer that establishes a SIMPLE IRA plan is not responsible for monitoring compliance with either of these limitations.
Related Questions
- Can I contribute to a traditional IRA if I participate in my employers retirement plan? What about if my spouse participates in an employer sponsored plan?
- May an employee participate in a SIMPLE IRA plan if he or she also participates in a plan of a different employer for the same year?
- Can an employer make contributions under a SIMPLE IRA plan for a calendar year if it maintains another qualified plan?
