Simple IRA v/s Simple 401k

[Guest scarletrose]

Out of a Simple 401k and Simple IRA, which one would you choose?

This article http://www.research401k.com/simple-ira-401k.html says

"Employer contributions to a Simple 401k & Simple IRA account are subject to different rules. For example, Simple 401k accounts are subject to a Compensation Cap of $220,000 per year for the year 2006."

While the Simple IRA is not subject to this compensation cap. So if you're a high income earner, you would choose the Simple IRA instead of the Simple 401k?

[Bill Presson]

Out of a Simple 401k and Simple IRA, which one would you choose?

This article http://www.research401k.com/simple-ira-401k.html says

"Employer contributions to a Simple 401k & Simple IRA account are subject to different rules. For example, Simple 401k accounts are subject to a Compensation Cap of $220,000 per year for the year 2006."

While the Simple IRA is not subject to this compensation cap. So if you're a high income earner, you would choose the Simple IRA instead of the Simple 401k?

I would use the simple IRA just because there is no 5500 filing.