what is the maximum contribution that an employer can make to an employee's simple account?
Contributions and Limits. Only employee salary deferral and employer contributions are allowed into a SIMPLE IRA. Employees can defer a percentage or a set amount from their individual pay during the course of the year. The maximum contribution amount for an employee in 2016 is $12,500. For employees older than age 50, a catch-up contribution of an additional $3,000 can be made, for a total of $15,500. This deferral amount is tax-deferred, similar to a 401(k) plan, so it reduces the taxable ...