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?
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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.
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Thanks why would it be different eligibility for an owner to receive a non-elective contribution vs an employee in the 2nd company?– Peach12Jan 5 '14 at 22:52
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@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. Jan 6 '14 at 0:33