Are Simple IRA contributions tax deductible?

[JaimeG · Accepted solution]

Employee contributions to a SIMPLE IRA plan are not deducted by participants from their income on their Form 1040. If you participated in a SIMPLE IRA plan through your employer, the amount contributed into the plan is already excluded from your Gross Income (Box 1 of W2) for Federal Withholding purposes. It is only considered as income for Social Security and Medicare withholdings. When you enter the information from your W2 into TurboTax, the program will maximize your return according to the type of contributions you have made throughout the year.

[dmertz]

Any amount reported with code S in box 12 of your W-2 has already been excluded by your employer from the amount reported in box 1 of your W-2.

[Navynacho]

Can I make an additional contribution to my simple IRA, to lower my taxes owed, like a traditional IRA?