Anthony C
Level 1
‎12-08-2020 07:20 AM

If I am understanding this correctly, business owner maxed out contributions to traditional IRA ($6,000) then opened a SIMPLE IRA and maxed that contribution ($13,500), are both deductible in the same year? staying under the individual ($19,500) limit for 2020?  TIA 

0 Cheers
Terry53029
Level 14
Level 14
‎12-08-2020 12:06 PM

Yes, If all requirements are met. SIMPLE IRA contribution limits  are not cumulative with traditional and Roth IRA limits. However, SIMPLE IRA limits are cumulative with the contribution limits for other employer-sponsored plans, such as 401(k) plans and 403(b) plans. A simple plan is considered being covered by a retirement plan at work, so the traditional IRA may have limits on the deductibility on his 1040.  

IRonMaN
Level 15
‎12-08-2020 01:26 PM

So that's a "maybe" then? 😁


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