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How much can an employee contribute to a SIMPLE IRA?

employer contributions: a. matching contributions or b. nonelective contributions. No other contributions can be made to a SIMPLE IRA plan. The amount an employee contributes from their salary to a SIMPLE IRA cannot exceed $16,000 in 2024 ($15,500 in 2023; $14,000 in 2022; $13,500 in 2020 and 2021; $13,000 in 2019 and $12,500 in 2015 – 2018).

How much can employees contribute to a SIMPLE IRA in 2023?

The most employees can contribute to SIMPLE IRAs in 2023 is $15,500, with an additional $3,500 catch-up contribution for those age 50 and older. In 2024, the SIMPLE IRA employee contribution limit increases to $16,000, with an additional $3,500 catch-up contribution for those age 50 and older.

How much can I contribute to my IRA?

You also cannot contribute more to your IRAs than the income you earn each year. If your income is lower than the contribution limit, your annual IRA contribution may be limited to your earned income. For example, if your earned income is $5,000, your max contribution limit is $5,000.

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