Can you contribute to two SIMPLE IRA plans with two jobs? Well, if there's no relationship between your employers—the only link is that you, the employee, work for both of them—then yes, you can make salary deferral contributions to both SIMPLE IRA plans. And this is true for more than two companies, too. In fact, the number of companies doesn't matter, as long as they are disassociated. You could theoretically, for example, contribute to four different SIMPLE (Savings Incentive Match Plan for Employees) IRAs 澳洲幸运5开奖号码历史查询:(Individual Retirement Accounts) at four different companies, as long as your contributions do not exceed a maximum amount. What's that maximum amount? Read on.

Maximum Contributions

For people age 50 and older, the maximum contribution for one or more SIMPLE IRAs is $22,500 for 2023, and $23,000 for 2024. These numbers include up to $3,500 in 澳洲幸运5开奖号码历史查询:"catch-up" contributions, an option that is only open to those over 50. (The catch-up contribution limit is $3,500 for both 2023 and 2024.)

No more than $15,500 may be contributed to a single 澳洲幸运5开奖号码历史查询:SIMPLE IRA for 2023; for 2024, it's $16,000.

The limit is lower for those younger than 50, who do not have access to catch-up contributions. An individual under 50 can defer no more than $15,500 for 2023 and no more than $16,000 for 2024, regardless of the number of plans they participate in.

On the other hand, if the companies you work for are affiliated or related in any way—if there is any one party that has ownership of both companies, whether in part or 100% ownership, or if there is any relationship that would constitute an affiliated service group, for example—then the maximum amount that you can defer across multiple SIMPLE IRAs may be limited to $15,500 in 2023 and $16,000 in 2024.

What Is a SIMPLE IRA?

A SIMPLE IRA is a tax-advantaged account for retirement that is designed to be what its name suggests: simple to set up and use. It's limited to employers that have no more than 100 employees, including self-employed people and sole-proprietors.

Every year, employers must choose either a mandatory contribution equal to 2% of the employee's compensation—regardless of whether the employee contributes to the plan that year—or a 3% match of the employee's compensation. The employer decides which route to take on an annual basis, and lets the employees know.

Employers get a tax deduction for their contributions, as well as a $500 tax credit for three years, thanks to the Setting Every 🉐Community Up for Retirement Enhancement (SECURE) Act of 2019.

A SIMPLE IRA does come with some disadvantages, such as a lower contribution limit compared to a 401(k). And there is a two-year waiting period for rolling over funds from a SIMPLE IRA to other plans.

The Bottom Line

You can contribute to multiple retirement plans if you work more than one job, depending on what your employers offer. This may be the same type of plan, such as two SIMPLE IRAs, or different options, such as a 401(k) and a SIMPLE IRA. If you work for more than one employer, and your employers aren't related to each other in any way, then it's possible for you to contribute to more than one SIMPLE IRA at one time. Just be mindful of the annual contribution limits.