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EmployER contribution limit to SIMPLE IRA
Old 12-23-2008, 12:28 PM   #1
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EmployER contribution limit to SIMPLE IRA

I am self employed. If I contribute the max to my SIMPLE IRA, (10,500 I think) as an employee, what's the most my employER (me also) can contribute?

I think i might have messed up something...this is the first full year of contributing and the split right now looks like employee- 7000...employer 3000

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Old 12-23-2008, 02:19 PM   #2
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The "employer" must contribute, but there are a couple of different options/formulas. Who did your plan? Did you get help from an accountant? If so, have him or her help with the contribution. What does your plan say?

Here is some general info that talks about the employer contribution: SIMPLE IRAs: Contributions


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Old 12-23-2008, 09:56 PM   #3
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I clarified it with Vanguard....the part that didn't make sense is that i thought the employer could contribute dollar for dollar up to 3% of the employee's contributions, whereas in reality it's 3% of the employee's COMPENSATION that makes a big difference!

In the end though, Vanguard has me specify employee vs employer when I contribute. This differentiation is not indicated on the tax forms they send me at the end of the's more for bookkeeping on their site. as long as I can make the numbers jive based on the cumulative total, I should be fine. and they do

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