Person is an employee and is self-employed. Person has maxed out annual 401k contributions at employer's company. Can this person receive Simple IRA 2% annual nonelective contributions from second place of employment in which he's a self-employed owner?


If you maxed out your 401k, you cannot make any elective contributions to the Simple IRA. Non-elective are not counted towards that limit, so you can still have the non-elective contributions made for you (similar to the 401k match).

Read more here.

Check with a professional tax adviser (EA/CPA licensed in your State) what would be the requirements for the owner to be eligible for the non-elective contribution.

  • Thanks why would it be different eligibility for an owner to receive a non-elective contribution vs an employee in the 2nd company?
    – Peach12
    Jan 5 '14 at 22:52
  • @peach12 there are some restrictions on owners with regards to the retirement plans, so I suggest talking to someone who is well versed in all these rules.
    – littleadv
    Jan 6 '14 at 0:33

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