SIMPLE IRA’s (Savings Incentive Match Plan for Employees)
| YEAR | CONTRIBUTION IF UNDER THE AGE OF 50 | CONTRIBUTION IF OVER THE AGE OF 50 | DEADLINE TO OPEN IRA | DEADLINE TO EMPLOYEE TO FUND IRA |
|---|---|---|---|---|
| 2016 | $12,500 | $15,500 | 10/1/2016 | 12/31/2016 |
| 2017 | $12,500 | $15,500 | 10/1/2017 | 12/31/2017 |
- Above contributions are salary reduction contributions
- If an employee participates in any other employer plan during the year and has elective salary reductions under those plans, the total amount of the salary reduction contributions that an employee can make to all the plans he or she participates in is limited to $18,000 in 2016 and 2017
- The employer is generally required to match each employee’s salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee’s compensation. This requirement does not apply if the employer makes non-elective contributions instead