Comments on: 7 Things You Need to Know About a SIMPLE IRA for 2024

By: Judy

Judy — Thu, 05 May 2022 15:37:58 +0000

I have contributed 3% of gross compensation to my simple IRA for years which my employer matched. This year, with change of management, they are only contributing 3% of gross less section 125 deductions. This reduces the employee match significantly as I have Family medical deductions and Family HSA deductions. They claim that is how compensation is defined for a simple IRA. My question is can they contribute more than the 3% of gross less section 125? Can they define the match to be 3% of gross. If they cant it seems that employees with the same gross pay will receive different matching contributions depending on whether they have single or family or no medical coverage or HSA contributions.

By: Jeff Rose

Jeff Rose — Sun, 19 Aug 2018 00:28:25 +0000

In reply to Ron. Agreed Ron.

By: Ron

Ron — Fri, 17 Aug 2018 14:06:59 +0000

In reply to Jeff Rose. In order to be classified as "self-employed" Chuck will need to get paid by 1099-MISC, not a W2, unless there is someway for him to be classified as a "statutory employee", which based on his description, I don't believe he would.

By: Jeff Rose

Jeff Rose — Sun, 29 Jul 2018 15:23:50 +0000

In reply to Josh Balfanz. Hi Josh - You can keep the SIMPLE but you can't continue contributing to it. But you can make contributions to a traditional or Roth IRA. And yes you can roll the SIMPLE into an IRA.

By: Josh Balfanz

Josh Balfanz — Tue, 24 Jul 2018 02:14:17 +0000

I have a SIMPLE IRA from a ex employer, i was wondering if i can still deposit money to it. (After tax money)? Ive had it for about 7 years.. or do i have to roll it into a IRA? txs

By: Jeff Rose

Jeff Rose — Wed, 18 Apr 2018 22:29:55 +0000

In reply to Will Piper. Hi Will - I believe so. Since it's early in the year, and no tax deductions have been claimed, the funds should be able to be reclassified. Talk with the plan administrator to see how to proceed.

By: Jeff Rose

Jeff Rose — Wed, 18 Apr 2018 22:23:33 +0000

In reply to Suzanne. Hi Suzanne - Contact the plan administrator and let them know what happened. They may be able to correct the situation, then issue corrected tax information.

By: Will Piper

Will Piper — Sat, 14 Apr 2018 18:30:16 +0000

I have an employee that was here on a H-1B Visa. His Visa ran out and was not renewed. This year we started including him on our SImple IRA. Since the year is not over can we just give him the money back and have our IRA company return what we sent them? He has only had 8 deductions over 4 months of this year.

By: Suzanne

Suzanne — Fri, 13 Apr 2018 17:06:58 +0000

What if the employer received incorrect account information and the deductions & company match went to a savings account vs Simple IRA account? How can this be corrected?

By: Jeff Rose

Jeff Rose — Thu, 15 Mar 2018 22:03:48 +0000

In reply to George. Hi George - I presume that you have some influence over this transition, even as a new employee. But talk to a trustee about creating a SIMPLE IRA for the company, then ask about the implications of making a transfer from the existing 401k plans. It's not possible to give a general answer to all the implications, so you need to get very specific advice from an interested party.