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.