SEP IRA

Posts Tagged ‘simple ira contribution limits 2009’

Question: Can I have both a SIMPLE IRA and a ROTH IRA? What are the Contribution limits for each?

Answer: The SIMPLE IRA is a low-maintenance retirement plan that offers many features of the more common 401(k) without the complexity, administrative burden and increased administration costs. The SIMPLE allows self-employed business owners or “side business owners” to defer up to a maximum of $6,500 a year (plus certain matching Contribution amounts) from their net business earnings
The ideal candidate for a SIMPLE is a self-employed individual who makes less than $35,000 and has the financial resources available to maximize retirement plan contributions. With a SIMPLE, the maximum Contribution would be $7,470 ($6,500 elective deferral portion plus a matching Contribution of $970) which is greater than the maximum amount allowed with a SEP or a combination Keogh plan.

The combined maximum allowed for the Traditional IRA and a Roth IRA is limited to $4,000 per year, or $4,500 for age 50 and over)