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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).
Contributions: Employer is required to contribute each year either a: Matching contribution up to 3% of compensation (not limited by the annual compensation limit), or. 2% nonelective contribution for each eligible employee.
The SIMPLE IRA contribution limit for 2025 is $16,500. Those age 50-59 or age 64 or older can save an additional $3,500 as a "catch-up contribution." Those age 60-63 can save $5,250 as a catch-up contribution.
A SIMPLE IRA plan provides small employers with a simplified method to contribute toward their employees' and their own retirement savings. Employees may choose to make salary reduction contributions and the employer is required to make either matching or nonelective contributions.
SIMPLE IRA Contribution Limits for 2024 and 2025. The SIMPLE IRA contribution limit increased by $500 for 2025. Workers at small businesses can contribute up to $16,500 or $20,000 if 50 or...