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Simple Employer limit for 2001


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Guest Pinestream

What is the 2001 employer limit for SIMPLE Plans. I realize that $6,500 is the employee limit, but have not seen anything regarding the employer limit.

Thanks in advance for your assistance.

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For SIMPLE 401(k) plans, the 2001 limit will be 170,000x3% or $5,100 for matching; and 170,000x2% or $3,400 for the nonelective. For SIMPLE IRAs, the 2001 limit will also be $3,400 for the nonelective. The matching can max out at $6,500, assuming a salary in excess of $216,666.66.

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  • 4 weeks later...

That number is not specifically mentioned. Because the 401(a)(17) limit does not apply to SIMPLE IRAs, the match is not limited to 3% of 170,000. But the match cannot exceed the amount of actual deferral, so the match can be at most $6,500 as long as the compensation is high enough to merit a $6,500 match at 3%. The only way you can get $6,500 into match with a match equal to 100% up to 3% of compensation is if your compensation is 216,666.67 or more (.03*216,666.67=$6,500).

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