LTurner
Apr 12 2006, 01:28 PM
does anyone have a SIMPLE IRA calculation worksheet, or link to one, that will help show accountants how to correctly calculate the maximum contribution for self employed (sched C) individuals? I've been using an old SEP-Qualified Plan worksheet and keep modifying it.... there must be something quicker/easier.
please advise.
ERISAnut
Apr 26 2006, 06:35 PM
With respect to SIMPLE IRA calculations, it should prove very simple as you do not have to reduce for the 1/2 of the self employment taxes when determining compensation.
Hence, once you reduce the owner's compensation by "employer" amounts funded to the employees, you go straight to reducing his compensation by $1 for each $1 of employer contribution. You shouldn't need a spreadsheet for this.