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SIMPLE IRA
Contribution


SIMPLE IRA Contribution Limits & Deadlines

Year Maximum Contribution Limit
(if under age 50)
Maximum Contribution Limit
(if over age 50)                  
2018 $12,500 $15,500
2017 $12,500 $15,500

Open Deadline: Oct. 1 of current year

Employee Fund Deadline: Defer from last paycheck or Dec. 31

Employer Fund Deadline: Extended due date of the business tax return

SIMPLE IRA must be open for two years before transfers out are allowed

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SIMPLE IRAs must be established by Oct. 1 (without extensions) for the tax year in which your qualifying contribution(s) will apply. 

SIMPLE IRAs are employer sponsored retirement plans.
 
  • SIMPLE IRA contributions include:
    • Employee salary reduction contributions and
    • Employer contributions either as matching contributions or non-elective contributions.
  • SIMPLE IRAs generally require the employer to match employee's reduction contributions on a dollar-for-dollar basis, up to 3% of the employee's compensation.
  • Instead of matching contributions, an employer can choose to make non-elective contributions of 2% of each eligible employee’s compensation. If the employer makes this choice, it must make non-elective contributions whether or not the employee chooses to make salary reduction contributions. An employee's compensation up to $270,000 for 2017 is taken into account to figure the contribution limit.
  • ​Catch-up contributions are allowed.  Catch up contributions for participants of SIMPLE IRAs age 50 and over can contribute an additional $3,000 in 2017.
 
Learn more about SIMPLE IRAs
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