I am employed by an educational institution. Earlier this year TIAA-CREF had calculated the max. monthly amount I could defer for 1999 under my 403(B) salary reduction agreement. I have currently been deferring that amount. I also have self-employment income from consulting work and have set up a SIMPLE IRA. Is there as maximum combined amount I can defer in a given year when I combine both the my 403(B) salary reduction and my SIMPLE? My calculations currently show that if I fund the max. $6000 allowable in my SIMPLE IRA I would by above 25% of my total net earned income for the year.

I'm sorry no one else responded sooner and with more qualifications.

I'm not a CPA, but I think you are OK in what you are doing.

In my view the consulting and university activities are stand alone activities, each with separate rules on tax deferred contributions. I see no problem with the 25% limit; that limit applies to your university compensation and your independent consulting is a separate business.

You could even possibly do a Roth IRA in addition to these.

But with your SIMPLE do not forget to make the "employer" matching contribution.

It's nightime at the end of a long day, so please verify my suggestions with a CPA. I'd bet money on my answers, but not a lot of money.

Good luck.

Elective amounts under both plans can not exceed in the aggregate $10,000 (or up to $13,000 limit if applicable). [IRC402(g)]

[This message has been edited by Gary Lesser (edited 01-13-2000).]