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I currently have maxed out my 401K contributions at my day job and have reached the $9500 contribution limit. I also have a moderately successful side business (sole proprietorship) that will allow me to invest a good bit of money this year. I'm interested in deferring taxes on as much of these additional savings as possible.

It was suggested by a colleague to look into setting up a SIMPLE Retirement Plan. I've downloaded the IRS Form 590 that deals with IRA's and I'm somewhat confused by the TOTAL amount of tax-deferred savings an individual can have in one year. In the form, the following warning appears:

If an employee is a participant in any other employer plans during the year and has elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the $9,500
annual limit on exclusions of salary reductions and other elective deferrals.

I've searched all through the document and found no other mention of the "$9500 annual limit" although I'm aware of my 401K's limit. Does this mean that I can only contribute $9500 TOTAL tax-deferred across both retirement savings accounts (401K and SIMPLE)??

Any other suggestions on how to proceed??

Thanks in advance...

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