Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Change from 401k to SIMPLE IRA, what is the contribution limit in year of job change
Old 04-28-2023, 09:54 AM   #1
Thinks s/he gets paid by the post
jIMOh's Avatar
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Change from 401k to SIMPLE IRA, what is the contribution limit in year of job change

If you can cite IRS publications, you know more than my CPA and I do

I am 50 yo
I am changing employers and new employer has a SIMPLE IRA
old employer is a 401k and I also started a catch up contribution- will be maxed out if I stay (ytd contributions are $2616 401k, $1125 catch up $3778 Roth 401k)
SIMPLE IRA starts once hired

Max 401k is $26.000
Max SIMPLE is $16,500

My CPA said without much research just stay under the $16,500 for the year and max out SIMPLE for 2024

edit to add- found this, need to confirm it is current

If Joe Saver, who’s over 50, has only one employer in 2020 and participates in that employer’s 401(k) plan, the plan would have to permit catch-up contributions before he could defer the maximum of $26,000 for 2020 (the $19,500 regular limit for 2020 plus the $6,500 catch-up limit for 2020). If the plan didn’t permit catch-up contributions, the most Joe could defer would be $19,500. However, if Joe participates in two 401(k) plans, each maintained by an unrelated employer, he can defer a total of $26,000 even if neither plan has catch-up provisions. Of course, Joe couldn’t defer more than $19,500 under either plan and he would be responsible for monitoring his own contributions.

The rules relating to catch-up contributions are complex and your limits may differ according to provisions in your specific plan. You should contact your plan administrator to find out whether your plan allows catch-up contributions and how the catch-up rules apply to you.
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


401k, contribution limits, simple ira

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
401k went over contribution limit Blux FIRE and Money 3 01-08-2023 09:00 AM
Roth IRA contribution limit for 2012? Mill Young Dreamers 3 10-21-2011 08:22 AM
Roth IRA contribution limit for 2011? Mill FIRE and Money 8 10-29-2010 11:39 AM
EmployER contribution limit to SIMPLE IRA thefed FIRE and Money 2 12-23-2008 09:56 PM
SIMPLE ira contribution limit chrisdut Young Dreamers 2 01-11-2006 04:52 PM

» Quick Links

All times are GMT -6. The time now is 02:35 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.