What is the annual limit on the amount of salary reduction contributions under a SIMPLE IRA plan?
The maximum annual amount of salary reduction contributions (not counting catch-up contributions) that can be made on behalf of any employee under a SIMPLE IRA plan is $11,500 for 2009 and $10,500 for 2008. If an employee is age 50 or over, the maximum annual amount of salary reduction contributions that can be made on his or her behalf is $2,500 for 2008 and 2009. After 2009, the limitations will be adjusted by the Service to reflect any changes in the cost-of-living .
The maximum annual amount of salary reduction contributions (not counting catch-up contributions) that can be made on behalf of any employee under a SIMPLE IRA plan is $10,500 for 2007 and 2008. If an employee is age 50 or over, the maximum annual amount of salary reduction contributions that can be made on his or her behalf is $2,500 for 2007 and 2008. After 2008, the limitations will be adjusted by the Service to reflect any changes in the cost-of-living.
