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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
SIMPLE Plans
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Maximum Compensation Used for Figuring Contribution Limits
The maximum compensation used for figuring contribution limits and benefits for 2011 is $245,000.
Employees:
Employee compensation is the total wages, tips, and other compensation subject to federal income tax withholding and employee's salary reduction contributions made under the plan.
Self-Employed Persons:
If you're self-employed, compensation is your net earning from self-employment (line 4, Section A, or line 6, Section B, of Schedule SE) before subtracting any contributions made to the SIMPLE IRA for yourself.
Time Limit for Employer to Deposit Salary Reduction Contributions
The employer must make salary reduction contributions to the employee's SIMPLE IRA within 30 days after the end of the month in which the amount would have otherwise been payable to the employee in cash.
You, as the employer, must make your matching contributions or nonelective contributions on behalf of the employee by the due date (including extensions) for filing your federal income tax return for the year.
Next:
SIMPLE Plans: Form W-2 Reporting for SIMPLE IRA Contributions
Related Links
- What is a SIMPLE Plan?
- Who Can Participate in a SIMPLE Plan?
- Setting Up a SIMPLE Plan
- SIMPE IRAs
- Eligible Employees
- When to Set Up a SIMPLE Plan
- SIMPLE Plan Salary Reduction Contribution Limits
- Who Contributes to a SIMPLE IRA?
- Matching and Nonelective Contributions
- Choosing a Lower Matching Percentage
- Nonelective Contributions
- How Much Can a Nonelective Contribution Be?
- Deducting Matching and Nonelective Contributions
- Timing Deductions for Contributions
- Two Ways To Set Up a SIMPLE Plan
- After the SIMPLE Plan is Set Up
- What is an Eligible Employees?
- What is an Excludible Employee?
- When To Set Up a SIMPLE IRA Plan
- Notification Requirement
- Election Period
- SIMPLE 401 (k) Plans
- Distributions, Rollovers, and Withdrawals
- Credit for Small Employer Pension Plan Startup Costs
- Credit for Qualified Retirement Savings Contributions
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