If there is no relationship between the two companies – the only link is that you, the employee, work for both of them – then yes, you can make salary deferral contributions to both, up to an aggregate amount of $18,500, with no more than $12,500 to one of the SIMPLE IRAs.

The maximum aggregate contribution for an individual who reaches age 50 by the end of the year is $24,500. SIMPLE IRAs are subject to limitations established under IRC§ 402(g), which limits salary deferral contributions to $18,500 for 2018. Therefore, this individual who participates in multiple retirement plans can defer no more than $18,500 for 2007 (regardless of the number of plans in which he or she participates) plus catch-up contributions of $6,000.

On the other hand, if the two companies are affiliated or related in any way – if there is any one party that has ownership of both companies, whether in part or 100% ownership – or if there is any relationship that would constitute an affiliated service group, then the maximum amount that the individual can defer to both SIMPLEs may be limited to $12,500.

To learn more, check out the SIMPLE IRA tutorial.

This question was answered by Denise Appleby (Contact Denise)