How does the catch up limit work with a client that has a SIMPLE IRA for his dental practice and a 403b plan at the university ?
Example; He earns 12,000 at the university and defers $5,500 into the 403B plan there. He is over Age 50.
In his private practice he defers $9,000 into the SIMPLE ( he is self employed ).
The CPA's software is not allowing the $1,500 SIMPLE catch up.
I know the deferral limit for both plan is $13,000 for 2004. But could he get 2 catch up contributions from each plan ?

Contributions to a SIMPLE are included in the 402(g) limit of 13k with a 1500 catch up if over 50. SEE IRS Pub 560 P10.

Something’s wrong with the software, or the input. If he was at least age 50 by 12/31/2004, and deferred only $5,500 to the 403(b), then he should be able to defer $10,500 to the SIMPLE…compensation allowing.

rffahey, I have the same problem with my firm's tax software. I override the total SIMPLE contribution and document my calculations in the workpapers.