Simple Ira

[JoshinNC]

Can a participant in a 403b also open a SIMPLE IRA for her wholly owned PLLC?

My client is a nurse anesthestist (most likely didn't spell that right) and participates in her hospital's 403b and 457 plans. She also owns a SMPLLC doing anesthestist work on the side. We're wondering can she open a SIMPLE for the PLLC and defer $10,500 into it also, assuming that all of her deferrals for all plans do not exceed the annual limit for 2007 of $45,000?

I thought we had this discussion once before, but couldn't locate the thread.

[JoshinNC]

Found my answer

TTB pg 13-18

She can only contribute to both the 401k and SIMPLE deferrals up to the annual deferral limit for that tax year.

[New York Enrolled Agent]

Josh

In your original post, you said §403(B) & §457. I assume 401K was a typo??.

An important point is that the elective deferrals to a §457 plan are NOT coordinated with the other elective deferrals. So your client could do $15,500 in her 457 plan and another $15,500 in any combination of the §403(b) and SIMPLE provided that no more than $10,500 is put into the SIMPLE. Thus ( assuming she has sufficient income) she can do $31,000 plus her applicable employer 3% match on the SIMPLE.

[JoshinNC]

Thanks NYEA

Yes, 401k was a typo.

I did identify the same totals as you did after further investigation.