My employer offers a SIMPLE IRA plan to which I can contribute 3% of my salary. My employer contributes a 3% match.

The employee contribution limit of $12,500 is far higher than the 3% amount I will contribute by the end of the year. Do IRS rules allow me to make a lump-sum contribution to the account with my post-tax earnings and then make the appropriate income adjustments on my tax return (similar to how I make adjustments for IRA contributions)? Or is it only possible to contribute by deferring a portion of my paycheck?

To be clear, I would make the contribution before the Dec 31 contribution deadline and the total amount I contribute would be below the contribution limit.

  • 1
    Have you given any thought to asking your employer's HR department about the matter? Commented Mar 21, 2018 at 17:20
  • 1
    They wouldn't have a problem with me doing this, if it is allowed by tax law. I just clarified the question. Commented Mar 21, 2018 at 17:25

1 Answer 1


Unfortunately, it does not appear that you can. From the IRS website:

SIMPLE IRA contributions include:

1) salary reduction contributions and

2) employer contributions: a. matching contributions or b. nonelective contributions.

No other contributions can be made to a SIMPLE IRA plan.

You may want to ask your employer if you can have a higher percentage of your paycheck contributed to the plan for the remainder of the year while you live off of the savings you would otherwise contribute directly. However, this is not tax advice and you may want to contact a tax professional.

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