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Dswartz writes:

<<Pixy, I thought you told me a couple of days ago that a deferred compensation plan (which a SIMPLE is?) can't be used if you are covered by one already (e.g. a 401K at work. What is different about the 403b?)>>

Eek! How did I forget the 403b?? I was so focused on the SEP versus SIMPLE issue I totally ignored that statement. In this case, if the 403b has already been maxed at $10K, the SIMPLE is of no value becasue no contribution will be allowed as an employee. Only the employer's contribution ($720) can be made. That means the SEP at $3.3K would win out. A SIMPLE is a salary deduction plan like the 403b. That means an individual participating in both is limited to a combined contribution of the lesser of 25% of compensation or $10K. The SEP has no such restriction.

Thanks for catching the error.

Regards….Pixy
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