Can I put $10,000 into a SIMPLE IRA when I will only make $8,900?

Question

I have a small business and I want to max out my SIMPLE IRA, I have plenty of savings so I was wondering if I could put more then what I take as a salary into it.

This is a SIMPLE IRA not an IRA Please don't write an answer unless you know about them. -Thanks

Answer 1

I am not entirely sure, I looked at the IRS site and they don't mention it. What I would do if I were you is up your wage to $10,000 and add in a 3% match to your plan to make up the difference, if that puts the company in the red for the year that is OK most companies are in the red. If you are at the catch up age I would add that money into it too. I did find that the IRS says if this is not your only job you can only put in enough to max your yearly deduction limit. If you have employees that make over $5000 a year and you decided to add $10,000 to every ones account would be my question for you, that may change things. Obviously you are not happy with some of the answers you got so far I would recommend talking to a tax adviser that specializes in small business. Good Luck

Answer 2

nope. cant contribute more than you earn. Certainly you can check irs website or better yet ask the company that holds the IRA. And actually now that i am thinking about it, on an IRA i think there is a $2000 max contributio per year....on a SEP IRA you can contribute more but not sure what that amount is.

Answer 3

No