Open Account

SIMPLE IRA
Contribution

Download your FREE Investor's Guide to Self-Directed IRAs

Self-Directed IRA Investing Guide
With a self-directed SIMPLE IRA at New Direction IRA, your IRA can invest in the full range of allowable assets:
  • real estate
  • precious metals
  • private equity
  • private loans
  • ...and more.

Most people simply don’t know that these investments are allowable. Download our free guide and get the facts.

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SIMPLE IRA Contribution Limits & Deadlines

Open Deadline: October 1st of current year

Employee Fund Deadline: Defer from last paycheck or December 31st

Employer Fund Deadline: Extended due date of the business tax return

SIMPLE IRA must be open for two years before transfers out are allowed

Year Maximum Contribution Limit
(if under age 50)
Maximum Contribution Limit
(if over age 50)                  
2018 $12,500 $15,500
2017 $12,500 $15,500

SIMPLE IRAs must be established by October 1st (without extensions) for the tax year in which your qualifying contribution(s) will apply.

  • SIMPLE IRAs are employer sponsored retirement plans.
  • SIMPLE IRA contributions include:
    • Employee salary reduction contributions and
    • Employer contributions either as matching contributions or non-elective contributions
  • SIMPLE IRAs generally require the employer to match employee's reduction contributions on a dollar-for-dollar basis, up to 3% of the employee's compensation.
  • Instead of matching contributions, an employer can choose to make non-elective contributions of 2% of each eligible employee’s compensation. If the employer makes this choice, it must make non-elective contributions whether or not the employee chooses to make salary reduction contributions. An employee's compensation up to $270,000 for 2017 is taken into account to figure the contribution limit.
  • Catch-up contributions are allowed. Catch up contributions for participants of SIMPLE IRAs age 50 and over can contribute an additional $3,000 in 2017.
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