Gudgergirl Posted August 6, 2014 Share Posted August 6, 2014 Can a small business owner offer both a SIMPLE IRA ad a SEP IRA to his employees? Can the business contribute the maximum amount o each plan? Link to comment Share on other sites More sharing options...
Lou S. Posted August 6, 2014 Share Posted August 6, 2014 Not according to the IRS FAQs Can I contribute to my SIMPLE IRA plan if I maintain another retirement plan? Generally, you can’t contribute to a SIMPLE IRA plan for a calendar year if you maintain another retirement plan and any of your employees receives an allocation or accrues a benefit under the other plan during that calendar year (the “one-plan requirement”). However, you can have a SIMPLE IRA plan even though you maintain another retirement plan if: The other plan is only for employees covered under a collective bargaining agreement, and the SIMPLE IRA plan excludes these employees; or Your business was part of an acquisition, disposition or similar transaction during the current calendar year or the 2 prior calendar years, and only your separate employees participate in the SIMPLE IRA plan. If you maintain another retirement plan and one of the exceptions above does not apply, you must correct this mistake. Link to comment Share on other sites More sharing options...
masteff Posted August 6, 2014 Share Posted August 6, 2014 The code citation is 408(p)(2)(D), which cross-references 219(g)(5)(A) & (B) which is a list that includes 408(k). SIMPLE IRA is 408(p), SEP IRA is 408(k). Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
sbutler Posted August 29, 2014 Share Posted August 29, 2014 In the same vein, can an owner maintain a SEP IRA, for him only, if all of his employees are covered by a PEO 401(k) plan? Link to comment Share on other sites More sharing options...
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