For clients with SIMPLE and Roth SIMPLE IRAs, you can enter ongoing contributions within the Savings section of the Profile (or the Savings step of the initial data entry process). These savings cards can be added by clicking Add Saving in the upper right, and selecting either SIMPLE IRA or Roth SIMPLE IRA:
SIMPLE IRA Savings Data Entry
Click on this card to open a data entry drawer on the right side of your screen, allowing you to input the contribution information. The steps below outline the data entry process for SIMPLE IRA savings, but data entry for Roth SIMPLE IRA savings is identical:
1
The Saving name will default to [Client's] SIMPLE IRA, but you can enter a custom name if you'd like. In joint plans, you will also want to choose either the client or the co-client as the Owner.
2
Enter the client's annual Contribution to their SIMPLE IRA. Depending on the option you choose in the Target field, this can be an annual dollar amount, a % of the client's income, or the maximum contribution amount.
3
Specify the duration of the contributions using the Saving starts and Saving ends fields. By default, these will be set to 'Already started' and '[Client's] retirement' respectively.
4
Enter the details of the employer match, starting with the Primary match (full or partial) and the Primary match to (% of client's contribution). If necessary, you can also specify the Secondary match and Secondary match to percentages.
A common example might look like a full match of 100% up to 3% of the client's contribution, and a partial match of 50% up to 5% of the client's contribution:
5
For non-elective employer matches, you can skip the primary and secondary matches and instead enter a Flat percent match. This will occur regardless of employee contributions.
6
If some or all of the employer match is designated as a Roth contribution (as per Secure Act 2.0), indicate this percentage in the % of match to Roth field.
What does "Self-employed" do?
Checking the Self-employed box will cause this card to calculate contributions based on the client's Self-employment income, rather than Salary income.
Additional Information
Contribution Limits and Taxation
Total employee contributions will be capped at the IRS maximum ($16,000 for 2024, + $3,500 catch-up for those 50 and over).
For salaried clients, traditional SIMPLE IRA contributions will be deducted from the client's wages on Line 1 of the 1040. With the 'Self-employed' box checked, traditional SIMPLE IRA contributions will be treated as Adjustments to Income (Line 16 of the Schedule 1, Line 10 of the 1040).
Sample tax forms can be viewed in the Tax > Tax Estimate > Details tab:
Cash Flow Location & Details
Client contributions can be tracked in two locations within the Retirement > Cash Flows:
- The Summary tab > Planned Savings column
- The Invested Asset tab > Planned Savings column
Employer matches can be found in the Invested Asset tab > Employer Match & Other column:
Like other employer-sponsored plans, contributions to SIMPLE plans will always occur within the cash flow projections, even in years with cash flow deficits.
