<nearly_blind[at]yahoo.com> wrote:

- quote -

Yes. The SIMPLE deferrals are a subset of your total deferrals, so as long
as your total deferral from all sources doesn't exceed $15,500, you're fine.
The profit sharing limits are per individual per employer, not per
individual across all employers.

See Pub 525.
--
Phil Marti
Clarksburg, MD

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I've had a SE-401K for several years which I fund via sole-prop
consulting
income at the maximum deferral + 25% of profits (e.g. 15500 + 25% for
2007).
I also have a small C-corp that is a totally separate business
with about 5 employees which currently has no retirement plan.
If I establish a SIMPLE-IRA for 2008 for the C corp and participate
at the maximum deferral + company match
can I still contribute to the SE-401K up to the maximum levels such
that the total
deferral of both plans is less than the maximum 401K deferral (which
is more
than the IRA maximum deferral) ?

E.g. using 2007 limits
If I contribute a maximum $10.5K deferral + company match for the IRA
can I still contribute a $5K (15.5K - 10.5) deferral to the SE 401K +
25% profits?

Is there any dependence or interaction between the maximum IRA comany
match
and the 401K 25% profit sharing (this is unlikely but it doesn't hurt
to confirm)?

thanks.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >