Author Topic: Simple IRA  (Read 536 times)

joenorm

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Simple IRA
« on: December 05, 2019, 07:47:28 AM »
The small company I work for just started a "Simple IRA" plan for its employees.

My question is whether what I pay into this IRA has any affect on what I am allowed to put in my personal ROTH IRA?

thanks


terran

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Re: Simple IRA
« Reply #1 on: December 05, 2019, 08:40:59 AM »
No, the limits are separate.

If you and/or your employer contribute to the Simple IRA at any point during the year that does mean you are "covered by a retirement plan at work" which effects deductibility of traditional IRAs for both you and your spouse, but it doesn't effect Roth IRA eligibility.

Anything in a Simple IRA will also be a previously deducted IRA balance, so it would cause issues if you wanted to make a backdoor Roth contribution (non-deductible traditional IRA converted to Roth IRA) as the conversion would be taxable in proportion to previously deducted to non-deductible balances.

jb1

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Re: Simple IRA
« Reply #2 on: December 13, 2019, 06:43:40 AM »
Nope both different. Enjoy!