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
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.