Guest rffahey Posted March 24, 2005 Share Posted March 24, 2005 How does the catch up limit work with a client that has a SIMPLE IRA for his dental practice and a 403b plan at the university ? Example; He earns 12,000 at the university and defers $5,500 into the 403B plan there. He is over Age 50. In his private practice he defers $9,000 into the SIMPLE ( he is self employed ). The CPA's software is not allowing the $1,500 SIMPLE catch up. I know the deferral limit for both plan is $13,000 for 2004. But could he get 2 catch up contributions from each plan ? Link to comment Share on other sites More sharing options...
mbozek Posted March 25, 2005 Share Posted March 25, 2005 Contributions to a SIMPLE are included in the 402(g) limit of 13k with a 1500 catch up if over 50. SEE IRS Pub 560 P10. mjb Link to comment Share on other sites More sharing options...
Appleby Posted March 25, 2005 Share Posted March 25, 2005 Something’s wrong with the software, or the input. If he was at least age 50 by 12/31/2004, and deferred only $5,500 to the 403(b), then he should be able to defer $10,500 to the SIMPLE…compensation allowing. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
Lori Friedman Posted March 25, 2005 Share Posted March 25, 2005 rffahey, I have the same problem with my firm's tax software. I override the total SIMPLE contribution and document my calculations in the workpapers. Lori Friedman Link to comment Share on other sites More sharing options...
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