SIMPLE IRA Contribution Limits for 2019 and 2020

SIMPLE IRA Contribution Deadlines

Employee contributions (deferrals) are due within 7 business days after the amount is deducted from their pay.
Employer contributions are due by the employer's tax return date plus extensions.

SIMPLE IRA Information

A SIMPLE IRA is an employer-sponsored plan for businesses with 100 or fewer employees. Contributions come from both employee salary reductions and employer non-elective or matching contributions (similar to those found in a 401(k) plan).

SIMPLE IRA Contribution Limits

	2019	2020
Employee Elective Deferrals	$13,000	$13,500
Catch-Up Elective Deferral Contribution Age 50+	$3,000*	$3,000*
Your employer can elect from two different contribution methods. Check with your employer which option they have chosen. Employer contributions are in addition to your elective deferrals.

Eligibility for SIMPLE IRAs

Any business, sole proprietor, partnership, or corporation with fewer than 100 employees who earned at least $5,000 in the preceding year.
An employer can not maintain and contribute to any other employer retirement plan in the same calendar year.

Other Important Information

SIMPLE IRAs generally require the employer to match an employee's salary reduction contributions on a dollar-for-dollar basis, up to 3% of the employee's compensation.
Instead of matching contributions, an employer could choose to make non-elective contributions of 2% of each eligible employee’s contribution.

SIMPLE IRAs - Retirement Made Easy

SIMPLE IRA plans impose less administrative burdens on employers because unlike other employer-sponsored plans like a 401(k), SIMPLE plans are not subject to discrimination tests. They are also flexible in that contributions may come from both the employee and employer.

IRA Contribution Limits FAQs

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SIMPLE IRA Contribution Limits

SIMPLE IRA Contribution Deadlines

SIMPLE IRA Information

SIMPLE IRA Contribution Limits

Eligibility for SIMPLE IRAs

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SIMPLE IRAs - Retirement Made Easy

IRA Contribution Limits FAQs

Learn the answers to the most asked questions on the topic of contribution limits