Frequently Asked Question

January 14 2009 | Filed Under ยป ,

I work for two companies. How much can I contribute to each company's SIMPLE IRA?

It depends.

If you work for two companies that are unrelated and unaffiliated, you can make salary deferral contributions of up to $20,500 between the two plans with no more than $13,000 going to one of the SIMPLE plans in 2008.

For this purpose, unrelated and unaffiliated means that the companies have nothing to do with each other, such as having the same owners and sharing resources.

If the companies are related or affiliated, your total salary deferral contributions are $13,000 (for 2008), which can be split between the two plans.

For more insight, check out the SIMPLE IRAs Tutorial.

This question was answered by Denise Appleby.
by

Denise Appleby

Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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