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For the past three years I have been working as a contractor and had a SIMPLE IRA. This past week marked my change to a full-time employee at the client I had been working. As such, I am now eligible for the 401k at my new employer.

For the 2005 tax year, am I restricted to contributing $14k less what I have already contributed to my SIMPLE IRA? For instance, I have contributed approximately $5k to my SIMPLE IRA thus far for 2005. Can I still contribute the full $14k to my new 401k or will I be limited to $9k to bring my total annual contribution to retirement accounts to $14k?

At the present time, I am searching through Google and the IRS website but I haven't found anything definitive. I have found listings of the limit for each type but not if I have contributed to both in the same calendar year. So I thought I would ask the people here with their vast knowledge to offer any pointers to where I can find a definitive answer.


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