||When should the plan be set up?
||A SEP IRA can be set up any time up to the due date of the employer's return, including extensions.
||A Simple IRA can be set up any time between January 1st and October 1st of the calendar year.
||What is the last date for a contribution?
||The SEP IRA contribution must be made by the due date of the employer's return.
||The due date for a Simple IRA contribution is the following:
- Matching or non-elective contributions: Due date of employer's return, including extensions.
- Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made.
||What is the maximum contribution?
||The maximum contribution for a SEP IRA is the smaller of 25% of the participant's compensation or $53,000 for 2016 ($54,000 for 2017).
||A contribution to a Simple IRA is as follows:
- Employee Contribution: Salary reduction for 2016 and 2017 is up to $12,500 (age 50 or over is $15,500 in 2016 and 2017.
- Employer Contribution: Either matching contribution, up to 3% of employee's compensation, or nonelective contribution of 2% of compensation.
||What is the maximum deduction?
||The maximum deduction for a SEP IRA is 25% of all participant's compensation.
||The maximum deduction for a Simple IRA is the same as the maximum contribution.
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