As I understand, a self-employed individual who contributes to a SIMPLE plan can also contribute to a traditional IRA, as determined by the Worksheet on page 13-12 of the TheTaxbBook. My client has already contributed $3k to her SIMPLE plan and now wants to contribute an additional $5k to a traditional IRA. I've used the worksheet and it calculates that she is eligible. Can anyone confirm my understanding? Thanks.
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I'm assuming SIMPLE plans work the same way as SEP plans. If so, then the individual is simply considered to be covered by a retirement plan for purpose of making an IRA contribution. Thus, the income limitations for IRA contributions kick in. As long as the income is under the limits, then it's possible to have both."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith
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