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Retirement tax questions
IRS documentation regarding Simple IRS plans say they cannot be terminated or amended without reasonable notice and must be continued for the full calendar year, unless they are started in the same year. Her plan was terminated after 6 weeks/3 payroll periods. There were no further matching contributions or deductions made, and she is well below the maximum amount.
It appears that we are being screwed 3 ways: by her employer, by the IRS, and by our investment/tax advisor.
I have done a what-if on TurboTax and we are paying $1900 more tax than we would be if her original contribution of $1200 had been taxed and the additional $7500 was then considered deductible.
‎February 13, 2024
10:14 AM