Single Point of View

Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.

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DEADLINE: Switching from a SIMPLE IRA plan to a 401k

So here are the numbers for 2015: If a company currently has a SIMPLE IRA plan, the employee can defer up to $12,500/yr., plus an additional $3,000 if they are over age 50. The employer can choose to make a 2% non-elective contribution (more about this at the IRS website ) or match employee contributions, up to 3% of compensationSIMPLE IRA Summary: The absolute maximum combined employer and employee contribution is $31,000   In a variation of a 401k plan, you can defer up to $18,000,  plus an additional $6,000 if you are over age 50. Employers can contribute additional funds, such as matching contributions and profit sharing.401k Summary: The absolute maximum combined employer and employee contribution is $59,000   This can all be fully tax deductible if you wish.   For those that have a SIMPLE IRA plan in place now, and want to switch to a 401k, here are items to consider: ...
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