Chapter 10: SIMPLE, 403B, & 457 Plans Flashcards
SIMPLE Contribution Limit
15,500 or 100% of income, whichever is lesser.
403B Contribution Limit
22,500
Public 457Plan Contribution Limit
22,500
Private 457Plan Contribution Limit
22,500
SIMPLE Catch-Up Provision
3,500
403B Catch-up provision
7,500
Public 457Plan Catch-Up provision
7,500
Private 457Plan Catch-Up provision
Not Allowed
Who Qualifies as a “Small Employer” in order to be eligible for the SIMPLE plan?
Employers who have 100 or fewer employees who each earned at least $5,000 in the preceding year.
Grace period to be eligible for SIMPLE plan
if qualified for a SIMPLE in one year, automatically qualify for next 2 years.
Paperworks to establish a SIMPLE Plan
5304-SIMPLE and 5305-SIMPLE
what is the age requirement for SIMPLE?
NO Age Requirement
SIMPLE plans for Employers
Must make a matching or nonelective contributions each year.
SIMPLE Plans Employer Matching Requirements
If Matching Elected - must be dollar for dollar up to 3% of compensation.
No Match for catch-up contributions required.
SIMPLE Plans Nonelective Contribution Requirements
If Non-Elective Contribution - must contribute 2% of employee compensation.
Must be made regardless if covered employee made contributions into the place or not.
employer contributions are tax-deductible
